--- title: "Blood loss exceeds 80%! Retail investors chasing Bitcoin, the \"number one belief stock,\" suffer from the backlash of high-leverage ETFs" type: "News" locale: "zh-HK" url: "https://longbridge.com/zh-HK/news/268152418.md" description: "Retail investors suffered significant losses due to chasing Bitcoin-related stocks of Strategy Inc., with its stock price plummeting over 60%. High-leverage ETFs such as MSTX and MSTU have fallen more than 80% this year, becoming some of the worst-performing products. Strategy has set up a $1.4 billion reserve to alleviate market concerns, but the losses for investors are difficult to recover" datetime: "2025-12-01T23:41:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/268152418.md) - [en](https://longbridge.com/en/news/268152418.md) - [zh-HK](https://longbridge.com/zh-HK/news/268152418.md) --- > 支持的語言: [简体中文](https://longbridge.com/zh-CN/news/268152418.md) | [English](https://longbridge.com/en/news/268152418.md) # Blood loss exceeds 80%! Retail investors chasing Bitcoin, the "number one belief stock," suffer from the backlash of high-leverage ETFs According to Zhitong Finance APP, retail investors who flocked to participate in Michael Saylor's grand Bitcoin experiment are now paying a heavy price. As the cryptocurrency market collapses, Strategy Inc. (MSTR.US), once highly sought after for packaging cryptocurrency assets into publicly traded stocks, is struggling to soothe market sentiment—its stock price has plummeted over 60% from recent highs. On Monday, Strategy announced it has established a $1.4 billion reserve to pay dividends and interest, attempting to alleviate market concerns about being forced to sell Bitcoin if prices fall further. However, for many investors, the losses are difficult to recover. The mainstream leveraged ETFs tracking Strategy's highly volatile stock—the 2x Long MSTR ETF-Defiance (MSTX.US) and the 2x Long MSTR ETF-T-Rex (MSTU.US) (which provide double daily returns)—have both fallen over 80% this year, ranking among the ten worst-performing products out of more than 4,700 ETFs in the U.S., second only to obscure gold mining and semiconductor short funds. Another fund launched during the cryptocurrency frenzy in June, the 2x Long MSTR ETF-GraniteShares (MSTP.US), has also seen significant losses since its listing. Since early October, the combined assets of these three funds have shrunk by approximately $1.5 billion. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20251202/1764631668563887.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Previously, when companies like Defiance and Tuttle Capital Management launched these high-risk products tracking Wall Street's most well-known Bitcoin alternatives, retail funds poured in. However, this path, once seen as a shortcut to amplify cryptocurrency returns, has now become a cautionary tale of leverage, volatility, and deteriorating market sentiment. Strategy's stock price fell 34% in November, while Bitcoin has also retreated about 30% from its October highs, hovering around $86,000. On Monday, Strategy closed down 3.25%, having at one point plunged 12% during the day. "Bitcoin's recent pullback has severely impacted Strategy's stock price, and leveraged products like MSTX and MSTU have further amplified the losses," noted Roxanna Islam, head of industry research at ETF firm TMX VettaFi. "This reminds us that leveraged single-stock ETFs can shine when prices are rising, but once the underlying assets reverse, profits can evaporate quickly." Defiance declined to comment. Tuttle Capital and the issuer of MSTP, GraniteShares, did not immediately respond to requests for comment. At the core of market concerns is a valuation metric known as "Market Value to Net Asset Value Ratio" (mNAV)—which is the ratio of Strategy's enterprise value to the value of its Bitcoin holdings Currently, this premium has basically disappeared, with the ratio dropping to about 1.17. Company executives had previously warned that this level is a danger zone. CEO Phong Le stated in a podcast that if the ratio falls below 1.0, the company may be forced to sell Bitcoin to meet its payment obligations, but he said this would only be a "last resort." The newly established reserves come from recent equity financing, aimed at mitigating this risk and can cover at least 21 months of dividend and interest expenses. However, this measure has failed to stem the decline in stock prices and has not alleviated market concerns about Strategy's leverage risk, retail dependence, and financing model pressures. To continue acquiring Bitcoin, Strategy has repeatedly issued common stock, a strategy that dilutes existing shareholders' equity and is quite controversial. As the valuation premium fades, the company has turned to issuing preferred stock and other more expensive financing tools to maintain cryptocurrency asset purchases. Meanwhile, the ETF ecosystem built around Strategy is facing difficulties. Data shows that there are currently at least 15 ETFs trading based on its stock, most of which have seen double-digit declines this year. The combined asset size of MSTX, MSTU, and MSTP has plummeted from $2.3 billion at the beginning of October to around $830 million now. Despite increased institutional participation in the cryptocurrency space and political support from the Trump administration, the market downturn has still severely impacted miners, altcoins, and companies holding large amounts of tokens. Leveraged ETFs, which were favored by retail investors earlier this year, have now become one of the hardest-hit areas. These funds were designed to double-track the daily volatility of Strategy — but this structure can quickly backfire in a volatile market. Even if the stock ultimately levels off, the compounding of gains and losses can erode returns, a phenomenon known as "volatility decay." When Strategy's stock price fluctuates sharply, the ETF not only tracks the decline but amplifies it significantly. "Leveraged ETFs are typically dangerous investment tools. Betting on a company's stock that purchases highly speculative assets through leverage adds even more risk," commented Michael O'Rourke, Chief Market Strategist at Jonestrading. Now, Strategy's position in major stock indices is also precarious. JPMorgan analysts have warned that the company may be removed from benchmarks such as the MSCI US Index and the Nasdaq 100 Index — a move that could trigger billions of dollars in passive fund outflows. For a company once seen as a potential component of the S&P 500, this reversal is indeed brutal ### 相關股票 - [BTC/HKD (BTCHKD.VAHK)](https://longbridge.com/zh-HK/quote/BTCHKD.VAHK.md) - [BTC/USD (BTCUSD.VAHK)](https://longbridge.com/zh-HK/quote/BTCUSD.VAHK.md) ## 相關資訊與研究 - [Strategy Highlights Bitcoin Holdings and Litigation Resolution Update](https://longbridge.com/zh-HK/news/281029351.md) - [YieldMax Bitcoin Option Income Strategy ETF announces weekly distribution of $0.2624](https://longbridge.com/zh-HK/news/281405647.md) - [The 4 Questions Investors Should Ask Before Buying Any ETF](https://longbridge.com/zh-HK/news/281549873.md) - [What Happens Next After the QQQ ETF’s 3% Single-Day Move? Here’s What History Tells Us.](https://longbridge.com/zh-HK/news/281552388.md) - [09:30 ETGlobal X Launches Ethereum Covered Call ETF Targeting Weekly Distributions](https://longbridge.com/zh-HK/news/281533657.md)