Investors flock to pair of turbocharged ETFs, don’t understand risks, WSJ says

Investors have congregated to a pair of turbocharged exchange-traded funds, ETFs, to take advantage of bitcoin’s (BTC) momentum, but the hidden risks of doing so aren’t widely understood, Jack Pitcher of The Wall Street Journal reports. These ETFs seek to amplify the daily return of MicroStrategy (MSTR), doubling the daily return of the stock to the upside or downside. Funds from asset managers Tuttle Capital Management and Defiance ETFs are inherently risky, and some believe the recent swell in MicroStrategy’s market value is unsustainable. Additionally, the two 2X ETFs have not been working as intended recently, with some days the shares not fulling doubling the upside value of MicroStrategy and on others the stocks dropping more than double the decline in MicroStrategy.