GraniteShares, a fast-growing asset manager with over $10 billion, has filed for new crypto-linked exchange-traded funds.
On Friday, December 20, the New York-based firm filed for new leveraged ETFs to track companies like Riot Platforms, Marathon Digital, MicroStrategy and Robinhood.
GraniteShares files for new crypto-related ETFs
Marathon Digital and Riot Platforms are the two largest Bitcoin (BTC) mining companies. They are also the third and second largest Bitcoin holders, with 44,394 and 17,429 coins on their balance sheet, respectively.
MicroStrategy holds the most coins at 439,000, while Robinhood serves as a major platform for crypto and stock investing.
These funds will be both 2x long and 2x short. 2x long ETFs generate twice the daily returns of the respective stocks. For example, the GraniteShares 2x Long RIOT ETF will rise 2% if Riot Platform stock rises 1%.
These leveraged ETFs have become very popular this year as the crypto and stock markets have hit record highs. Investors love them because they often provide high returns when stocks are on an upward trend.
The T-Rex 2x Long MSTR Daily Target fund, whose ticker symbol is MSTU, has attracted over $1.8 billion in assets under management. Likewise, the Defiance Daily Target 2X Long MSTR ETF with the ticker symbol MSTX has accumulated assets of $1.8 billion.
These funds have outperformed MicroStrategy over the past three months. Shares of MicroStrategy are up 150%, while shares of MSTU and MSTX are up 308% and 253%, respectively, over the same period.
However, the risk is…
