MicroStrategy Stock Falls as Bitcoin ETF Launches | ETF Trends

MicroStrategy Inc (MSTR) fell 2.7% on Tuesday during the launch of the ProShares Bitcoin Strategy ETF (BITO)

MicroStrategy, which made bitcoin acquisition a second mandate earlier this year, had since become a sort of bitcoin-proxy investment for investors looking for exposure to crypto. With a bitcoin ETF now available, it is unclear whether the stock will continue to serve as a vehicle for bitcoin investment. 

The company holds over 100,000 bitcoin, according to a September tweet from MicroStrategy CEO Michael Saylor. 

Other similar bitcoin-proxy stocks such as bitcoin miners Marathon Digital Holdings Inc. (MARA) and Bitfarms Ltd. (BITF) also took a hit on Tuesday, with both stocks falling more than 5%. 

All three stocks recovered well on Wednesday, briefly hitting monthly highs before falling slightly on Thursday. 

Bitcoin hit an all-time high of $66,900 on Wednesday, surpassing its previous record high of $64,899 in April. Meanwhile, BITO saw near-record trading volume and one of the largest first-day takes for an ETF on record. 

BITO’s launch was certainly an achievement for the crypto community. The rebound of bitcoin-proxy stocks shows that there are definitely still options for investors who want crypto exposure without the undue risk of more direct crypto investment via crypto-pegged products. 

The Bitwise Crypto Industry Innovators ETF (BITQ) is one of the most pure-play crypto ETFs available. BITQ invests in companies that derive the majority of their income from crypto assets, such as bitcoin miners like MARA and BITF. It also tracks a selection of large-cap firms with at least one business line focused on crypto. 

BITQ saw a dip on Tuesday during BITO’s launch but went on to hit a monthly high of $26.97 on Wednesday. 

BITQ currently has over $87 million in assets under management and has seen a 29.69% 3-month return.

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