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Data: Both long and short leveraged ETFs related to Strategy have fallen over 90% since inception.

MarsBitNews
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Mars Financial News, according to The Kobeissi Letter, the 2x leveraged ETFs for MicroStrategy ($MSTX, $MSTU) have both fallen about 82% year-to-date; another 2x leveraged product $MSTP has also fallen 81%. In the same period, MicroStrategy ($MSTR) itself has dropped 46% year-to-date, and fell 27% in the past single week. Dragged down by this, $MSTX, $MSTU, and $MSTP all nearly halved in the past single week. The report points out that leveraged MicroStrategy ETFs (both long and short) launched in 2024 have fallen over 90% since their inception. Although tens of billions of dollars had previously flowed in, the leverage effect is now greatly magnifying losses. Note: Leveraged ETFs typically use a daily reset mechanism, designed to achieve a multiple of the underlying's daily percentage change. In highly volatile markets, even if the underlying moves up or down overall over a period, frequent price fluctuations cause the compounding effect to make the actual performance deviate from the expected multiple, continuously eroding net asset value. This is known as "volatility decay" (also called beta slippage).
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