The ETF industry’s shark-jumping moment

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What fresh hell is this? Yes, people who think plain old MicroStrategy — which crypto loon Michael Saylor has turned into a leveraged bitcoin vehicle — is a bit too boring and steady can now simply buy a leveraged ETF that solely invests in MicroStrategy. So that’s leverage on leverage on an underlying asset that is already rife with leveraged trading. MicroStrategy’s one-year volatility is already 95.9, nearly eight times $SPY, State Street’s S&P 500 ETF.

’s 1.75 times leverage would crank that up to eyewatering levels. Single-stock ETFs are a painfully obvious regulatory workaround, designed mostly to offer easy leverage to people who somehow even Robinhood or WeBull won’t let trade options or get a margin account. Given the tons of YouTube videos that explain just how to game the approval system, this is a pretty . . . select group of elite traders.

 

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