SEC Approves 1.75x MicroStrategy ETF: A Bullish Sign for Bitcoin?
The Securities and Exchange Commission (SEC) has given the green light to a 1.75x fund called $MSTX, the first leveraged MicroStrategy ETF to be bullish on Bitcoin. This historic endorsement has surpassed Tuttle to the marketplace and is expected to capitalize on the significant demand for highly volatile ETFs, as demonstrated by the $5 billion Nvidia 2x EFT.
The timing of this approval may be crucial, given the current market situation. While the US dollar ($DXY) has reached equal highs (the pair indicated a possible reversal), Bitcoin typically performs well when the USD falls against the euro, and this correlation may hold true in recent times. The decline in DXY, likely due to Fed action and increased global liquidity, is a potential boon for Bitcoin as Treasury market volatility shapes risk asset strategies.
The cryptocurrency has already surpassed the Short-Term Holder Realized Price of roughly $65,000, which could provide an initial push towards the $70,000-mark and beyond. Additionally, there are significant liquidations between $60-60.4K ($93 million) and $61.8-62.2K ($75 million), which may propel Bitcoin’s price higher as these liquidation efforts build up momentum for new highs.
Reclaiming the Short-Term Holder Realized Price could lead to a surge towards the $70,000-mark, which is just below its previous all-time high of $74,000. The approval of the MicroStrategy ETF may also affect MicroStrategy’s stock price (MSTR). As one company heavily invested in Bitcoin, MicroStrategy’s stock value is often closely tied to Bitcoin’s performance.
The growing popularity of highly volatile ETFs is indicative of investors’ desire for riskier assets. Bitcoin and other digital currencies may be more likely to benefit from a shift in investor interest towards riskier assets, as the approval of the MicroStrategy ETF could provide opportune news on Bitcoin’s price trajectory. Additionally, the US dollar may experience reversal while Treasury market volatility affects investor sentiment, potentially pushing Bitcoin higher up to its highest point.
The positioned liquidations and the increasing interest in highly volatile ETFs may result in a buying pressure that propels Bitcoin towards new highs. It is intriguing to watch how this development will impact the cryptocurrency market, which has been known for several years.
Learn more about the impact of ETFs on the cryptocurrency market in our article: “ETFs and Cryptocurrency: How Volatile Funds are Changing the Game”.