JPMorgan Says MicroStrategy’s Use of Leveraged ETFs is Having a Growing Influence on Crypto Markets

JPMorgan: MicroStrategy’s Leveraged ETFs Are Increasingly Influencing Stock and Crypto Markets

JPMorgan (JPM) highlighted in a new report that the growing size and inflows of leveraged MicroStrategy (MSTR) exchange-traded funds (ETFs) are having an increasingly noticeable impact on both the company’s stock and the broader cryptocurrency markets.

The report noted that these ETFs played a key role in driving MicroStrategy’s stock price up nearly 60% in November. In total, nearly $11 billion flowed into U.S. spot bitcoin (BTC), spot ether (ETH), and leveraged MicroStrategy ETFs during the month. Out of this total, $3.4 billion—almost a third—came from leveraged MSTR ETFs.

“This demonstrates the rising influence of MicroStrategy’s leveraged ETFs in the crypto space, particularly through their role in fueling the company’s bitcoin acquisition program,” analysts led by Nikolaos Panigirtzoglou wrote.

MicroStrategy, led by Michael Saylor, spent $13 billion on bitcoin in just this quarter, according to the report.

The report attributes the growth of these ETFs to increasing investor demand for leveraged bitcoin exposure via ETF products, a strategy that is typically unavailable to retail investors. These ETFs allow investors to indirectly gain exposure to bitcoin while also benefiting from MicroStrategy’s large bitcoin holdings. The software company’s inclusion in major indices like the MSCI World index also means its stock attracts significant passive investment flows.

Furthermore, the report noted that investor confidence in MicroStrategy’s strategic plans—including its ambition to become a bitcoin bank and develop new BTC-based applications—has boosted its stock valuation, adding a premium to the company’s shares.

According to Benchmark analyst Mark Palmer, MicroStrategy currently meets the criteria for inclusion in the Nasdaq-100 index.