{"id":1762,"date":"2025-06-02T17:40:44","date_gmt":"2025-06-02T17:40:44","guid":{"rendered":"https:\/\/bitunikey.com\/news\/heres-why-this-mstr-stock-etf-has-crashed-82-in-2025\/"},"modified":"2025-06-02T17:40:45","modified_gmt":"2025-06-02T17:40:45","slug":"heres-why-this-mstr-stock-etf-has-crashed-82-in-2025","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/heres-why-this-mstr-stock-etf-has-crashed-82-in-2025\/","title":{"rendered":"Here\u2019s why this MSTR stock ETF has crashed 82% in 2025"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Strategy stock price has jumped by 27% this year, beating Bitcoin, which has jumped by almost 12%.\u00a0<\/p>\n<p>Meanwhile, a small leveraged ETF tied to the stock, Defiance Daily Target 2x Short MSTR ETF (SMST), has plummeted to a record low of $29, marking an 82% decline from its January levels. The ETF holds over $42 million in assets.<\/p>\n<figure class=\"wp-block-image size-full\"><picture loading=\"lazy\" decoding=\"async\" class=\"wp-image-14385180\"><source type=\"image\/webp\" ><\/source><\/p>\n<\/picture><figcaption class=\"wp-element-caption\">SMST vs MSTR vs Bitcoin | Source: <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/seekingalpha.com\/symbol\/SMST\/charting?compare=SMST%2CMSTR%2CBTC-USD&amp;interval=YTD&amp;metric=totalReturn\" target=\"_blank\">SeekingAlpha<\/a><\/figcaption><\/figure>\n<p>This sharp underperformance is due to SMST\u2019s design: it seeks -2x the daily percentage change of Strategy stock (MSTR). In other words, it is structured to rise when Strategy stock falls\u2014and to decline when the stock is in an uptrend.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>For example, on Monday, June 2, MSTR stock rose 1.30%, while SMST dropped 2.50%.<\/p>\n<p>Other leveraged MSTR ETFs have also lagged behind its stock this year. The Defiance Daily Target 2x Long MSTR ETF has dropped by 4.5% while the T-Rex 2X Long MSTR Daily Target ETF has also dropped by 6.4% this year.\u00a0<\/p>\n<p>These funds have struggled largely because Strategy stock has declined more than 12% from its highest level this year, despite remaining up year-to-date.<\/p>\n<h2 class=\"wp-block-heading\">Inverse leveraged ETFs like SMST are risky<\/h2>\n<p>Historically, leveraged inverse ETFs underperform their benchmark assets. For example, the ProShares UltraPro Short QQQ ETF or SQQQ has crashed by 97% in the last five years. In contrast,\u00a0 the ProShares UltraPro QQQ or TQQQ has jumped by 242% in the same period.<\/p>\n<p>The SMST ETF will likely continue falling since analysts anticipate that Bitcoin (BTC) will do well in the long term. Ark Invest sees Bitcoin jumping to $2.4 million by 2030, while BlackRock expects that it will hit $700,000.<\/p>\n<p>If these estimates are correct, it means that Strategy stock will jump in the long term because the company holds almost 600,000 Bitcoins, a number that is increasing weekly.\u00a0<\/p>\n<p>The other risk for SMST ETF is that it is highly expensive, with an expense ratio of 1.29%. In contrast, popular ETFs like the Vanguard S&amp;P 500 and iShares S&amp;P 500 charge just 0.03%. This means that a $10,000 invested in SMST will charge an annual fee of $129, while the S&amp;P 500 funds charge just $3 a year.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Strategy stock price has jumped by 27% this year, beating Bitcoin, which has jumped by almost 12%.\u00a0 Meanwhile, a small leveraged ETF tied to the stock, Defiance Daily Target 2x&hellip;<\/p>\n","protected":false},"author":1,"featured_media":1763,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/1762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=1762"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/1762\/revisions"}],"predecessor-version":[{"id":1764,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/1762\/revisions\/1764"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/1763"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=1762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=1762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=1762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}