12/20

Why is MSTZ Down Today After Nasdaq-100 Inclusion

The ETF Opportunities Trust T-Rex 2X Inverse MSTR Daily Target ETF (MSTZ) closed down 22.96% at $19.26 on December 20, 2024, as MicroStrategy's stock surged following its inclusion in the Nasdaq-100 index. MicroStrategy's stock rose 11.56% to $364.20, driven by the anticipated inflow of institutional capital due to its new status in the index. This inclusion is expected to bring at least $2.1 billion into MicroStrategy's stock, as funds tracking the Nasdaq-100 adjust their holdings. The company's strategy of leveraging its balance sheet to acquire Bitcoin has been a key factor in its stock performance, and its Nasdaq-100 entry is seen as a validation of this approach. The broader crypto market, however, faced headwinds, with Bitcoin ETFs experiencing record withdrawals of $671.9 million, reflecting waning demand and a dip in CME futures premiums.