NEW YORK, Sept. 09, 2024 (GLOBE NEWSWIRE) — Defiance ETFs, a leading provider of leverage-focused exchange-traded funds (ETFs), has filed with the SEC to increase the leverage exposure on its flagship MSTX (MicroStrategy) ETF from 1.75x to 2x. This filing has not yet been approved by the SEC.
The announcement coincides with the fund surpassing $100 million in assets under management (AUM). The rapid growth reflects strong investor demand for the product’s amplified exposure to MicroStrategy Inc. (MSTR), a company renowned for its substantial Bitcoin holdings and advanced data analytics solutions.
“We are thrilled by the strong early interest in MSTX, as it demonstrates that investors are keen to gain amplified exposure to MicroStrategy’s stock. This potential leverage increase will allow investors even greater leverage on MicroStrategy’s dynamic Bitcoin investment,” said Sylvia Jablonski, CEO of Defiance ETFs.
About Defiance ETFs:
Defiance ETFs is a leader in leverage-focused exchange-traded funds, providing innovative solutions designed for tactical traders and investors seeking amplified exposure to individual companies.
For more information about the MSTX ETF or Defiance ETFs’ full lineup, visit defianceetfs.com.
The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. The Fund pursues a daily leveraged investment objective, which means that the Fund is riskier than alternatives that do not use leverage because the Fund magnifies the performance of its Underlying Security. The Fund is not suitable for all investors. The Fund is designed to be utilized only by sophisticated investors, such as traders and active investors employing dynamic strategies. Investors who do not understand the Funds, or do not intend to actively manage their funds and monitor their investments should not buy shares of the Funds.
About Defiance ETFs
Founded in 2018, Defiance stands as a leading ETF issuer dedicated to income and thematic investing. Defiance also pioneers leveraged ETFs designed for traders seeking tactical opportunities.
Our suite of first-mover leveraged & thematic ETFs empowers investors to express targeted views on disruptive innovations, including artificial intelligence, machine learning, and quantum computing, while our actively managed options ETFs are designed to seek current income.
Important Disclosures
The Funds’ investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read carefully before investing. A hard copy of the prospectuses can be requested by calling 833.333.9383.
Defiance ETFs LLC is the ETF sponsor. The Fund’s investment adviser is Tidal Investments, LLC (“Tidal” or the “Adviser”).
Investing involves risk. Principal loss is possible.
There is no guarantee that the Fund’s investment strategy will be properly implemented, and an investor may lose some or all of its investment.
Underlying Security Risk. The underlying security is subject to many risks that can negatively impact the Fund.
Leverage Risk. Leverage may increase the risk of loss and cause fluctuations in the market value of the Fund’s portfolio to have disproportionately large effects or cause the NAV of the Fund generally to decline faster than it would otherwise.
Derivatives Risk. Derivatives may be more sensitive to changes in market conditions and may amplify risks.
Effects of Compounding and Market Volatility Risk. The Fund has a daily leveraged investment objective and the Fund’s performance for periods greater than a trading day will be the result of each day’s returns compounded over the period, which is very likely to differ from the Fund performance, before fees and expenses.
Single Issuer Risk. Issuer-specific attributes may cause an investment in the Fund to be more volatile than a traditional pooled investment which diversifies risk or the market generally. The value of the Fund, which focuses on an individual security, may be more volatile than a traditional pooled investment or the market as a whole and may perform differently from the value of a traditional pooled investment or the market as a whole.
MSTR Performance Risk. MSTR may fail to meet its publicly announced guidelines or other expectations about its business, which could cause the price of MSTR to decline.
Bitcoin Risk. While the Fund will not directly invest in digital assets, it will be subject to the risks associated with Bitcoin by virtue of its investments in options contracts that reference MSTR.
New Fund Risk. As of the date of this prospectus, the Fund has no operating history and currently has fewer assets than larger funds. Like other new funds, large inflows and outflows may impact the Fund’s market exposure for limited periods of time.
New Fund Risk. As of the date of this prospectus, the Fund has no operating history and currently has fewer assets than larger funds. Like other new funds, large inflows and outflows may impact the Fund’s market exposure for limited periods of time.
Brokerage Commissions may be charged on trades.
MSTX is distributed by Foreside Fund Services, LLC.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/219537e0-2f27-4fa7-8c05-a88932b3535c