David Beren

Two leveraged MicroStrategy ETFs, MSTX and MSTU, both promising 2x daily exposure to MSTR, have delivered nearly identical catastrophic losses of 95%+ over the past year, compared to MSTR's 67% decline. The underperformance stems from daily reset mechanics and volatility decay, compounded by structural capacity limits that forced both sponsors to shift from swaps to options as the funds grew. In December 2025 alone, the pair shed roughly $1.5 billion in retail capital, falling from $2.3 billion in assets to $830 million.