T-Rex 2X Long MSTR Daily Target ETF (MSTU) experienced a significant pre-market surge of 6.62% on Friday, as the cryptocurrency sector in the US stock market showed broad strength. The ETF's underlying asset, MicroStrategy (MSTR), saw a 3.2% increase in pre-market trading, contributing to MSTU's amplified gains.
The pre-market rally in the crypto sector was widespread, with several key players posting notable gains. Bitmine (BMNR) led the pack with a 16.7% increase, followed by SharpLink Gaming (SBET) at 9.79%, Bitfarms (BITF) at 5.6%, and Bit Digital Inc (BTBT) at 5.48%. This overall positive sentiment in the crypto-related stocks appears to have bolstered investor confidence in MicroStrategy and, by extension, its leveraged ETF.
As a 2X leveraged ETF, MSTU is designed to deliver twice the daily performance of MicroStrategy's stock, explaining its outsized 6.62% gain compared to MSTR's 3.2% increase. Investors should note that while leveraged ETFs can provide magnified returns on positive days, they also carry higher risks and can lead to amplified losses when the underlying asset declines. The pre-market surge in MSTU underscores the volatile nature of both the cryptocurrency sector and leveraged investment products.
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