T-Rex Group, renowned for its innovative exchange-traded funds (ETFs), has made a groundbreaking move by filing for an ETF designed to take a 2x long stance on the bitcoin-centric MicroStrategy (MSTR).

According to a filing revealed on the Securities and Exchange Commission’s EDGAR platform, the T-Rex 2X Long MSTR Daily Target ETF is structured to mirror 200% of MicroStrategy’s daily performance. In a parallel maneuver, T-Rex has also introduced an ETF that assumes a 2x inverse position on MSTR, offering investors leveraged opportunities to go both long and short on bitcoin.

MicroStrategy, deeply entrenched in bitcoin, is infamous for its volatility, closely mirroring the fluctuations of the preeminent digital asset. Presently, the stock’s implied volatility stands at a high 85.6, although it is trending downward from its recent peaks, as bitcoin’s price stabilizes.

In a strategic move to augment its bitcoin reserves, MicroStrategy’s CEO, Michael Saylor, recently declared the issuance of $500 million in convertible notes. This initiative underscores the company’s unwavering commitment to increasing its bitcoin holdings.

Bloomberg ETF analyst Eric Balchunas commented on X, predicting that these ETFs are poised to become the most volatile ever seen in the U.S., with volatility levels potentially reaching 20 times that of the SPX. He likened these ETFs to the “ghost pepper of ETF hot sauce,” emphasizing their high-risk, high-reward nature.

Other ETF issuers, including Defiance and GraniteShares, have also introduced products that short MSTR, reflecting a growing trend in the market.

In March, T-Rex expanded its portfolio by filing for six leveraged inverse bitcoin ETFs, with leverage ratios ranging from 1.5x to 2x, further solidifying its position as a pioneer in the ETF landscape.

By embracing such innovative financial instruments, T-Rex Group continues to redefine the boundaries of investment opportunities, offering sophisticated investors avenues to navigate the volatile world of bitcoin with precision and leverage.