There is always a bull market somewhere.
While Bitcoin and shares of the holder Bitcoin Strategy are falling, an exchange-traded fund designed to move in the opposite direction of MSTR and double its daily change has hit a record high.
That exchange-traded fund is the GraniteShares 2x Short MSTR Daily ETF, which trades under the symbol MSDD on Nasdaq. It is an actively managed fund designed to generate -200% of the daily return of the Strategy. In simple terms, if MSTR drops 2% in a day, the ETF is targeting a 4% gain that same day (before fees/drop).
The fund debuted on January 10, 2025 and is considered a short-term high-risk tactical tool for bears betting against MSTR. And it has lived up to its reputation.
MSDD price hit an all-time high of $114 on Tuesday, up 13.5% year-over-year, extending last year’s 275% rise, according to data source TradingView.
MSDD’s compatriot, the Defiance Daily Target 2x Short MSTR ETF (SMST), also posted an 11-month high of $113 on Tuesday. This fund debuted on the Nasdaq in August 2024.
In other words, MSTR confirms that those who loaded up on these ETFs have made a fortune.
The strategy fell to $126 on Tuesday, the lowest level since September 2024, extending its multi-month bear market. The stock is now down a staggering 76% from its all-time high of $543 in November of last year.
Strategy is the world’s largest publicly traded bitcoin holder, holding 713,502 BTC ($54.24 billion) at the time of this publication. Naturally, its share price tends to follow swings in the market value of bitcoin.
Bitcoin, the leading cryptocurrency by market value, has fallen 12% this year and was trading at just $73,000 on Tuesday. It was the weakest level since late 2024. Prices have since recovered to $76,000, thanks to the narrowly approved financing package that alleviated the risk of a US shutdown in the short term and stabilized risk sentiment in financial markets.
