The ETF industry’s shark-jumping moment

  • 📰 ftenergy
  • ⏱ Reading Time:
  • 21 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 63%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

The Fed needs to jack up rates NOW

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.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 47. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Tech sell-off leads US stocks lower and 10-year yield sinksInvestors balk at steep valuations amid modest corporate outlooks and bets rise on Fed rate cuts
Source: FT - 🏆 113. / 51 Read more »