Surging Trading Volume in Leveraged ETFs Signals Market Jitters as MSTR Clings to 200-Day Moving Average

Surge in Leveraged ETF Trading as MSTR Dips to Key Support Level

Trading activity in leveraged ETFs linked to Strategy (MSTR) soared on Monday as the bitcoin-focused company’s stock dropped to its 200-day simple moving average (SMA), triggering heightened investor interest.

The Defiance 2x Long MSTR ETF (MSTX) saw record trading volume, with 24.33 million shares exchanged. The ETF, which aims to double MSTR’s daily returns, tumbled 32% to $17.90—its lowest level since September, per TradingView data.

Conversely, the Defiance 2x Short MSTR ETF (SMST) experienced its busiest session since Nov. 24, with 51.21 million shares traded. This fund is designed to deliver twice the inverse daily performance of Strategy’s stock. Net inflow data for both ETFs has yet to be disclosed.

MSTR fell 16.6% on Monday, dipping to $231.62 as recession fears and a rising Japanese yen pressured risk assets. The stock has now declined 55% from its Nov. 21 peak of $543.

Strategy remains the largest corporate holder of bitcoin, with a stash of 499,096 BTC worth approximately $40.4 billion. The company has been aggressively accumulating BTC, primarily using proceeds from debt offerings.

In its latest move, Strategy announced a $21 billion at-the-market (ATM) stock offering on Monday, with plans to use the raised capital to acquire even more bitcoin.