MicroStrategy ETF with Weekly Income: Defiance ETFs Launches Leveraged $MST Strategy

Defiance ETFs has introduced the Defiance Leveraged Long + Income MSTR ETF (ticker: $MST), marking a shift in how retail investors can access amplified exposure to MicroStrategy without traditional margin accounts. Launched in May 2025, this exchange-traded fund blends two strategic components—leveraged price appreciation and structured income generation—into a single investment vehicle.

The Core Strategy Behind $MST

The fund targets approximately 150% to 200% daily performance relative to MicroStrategy’s share movements. This amplification is achieved through derivative instruments rather than borrowed capital, allowing investors to gain concentrated upside exposure while the platform simultaneously harvests income through credit call spreads. Weekly distributions make this approach distinct from traditional single-stock ETFs.

MicroStrategy, trading under NASDAQ: MSTR, has experienced explosive growth—surging over 4,000% since December 2022—largely driven by its corporate Bitcoin acquisition strategy and established position in data analytics. The $MST structure provides indirect Bitcoin market exposure through MSTR’s holdings, eliminating the need for direct cryptocurrency ownership.

Why This Product Emerged Now

Defiance’s earlier MicroStrategy-focused ETF offerings have accumulated over $1 billion in combined assets, demonstrating substantial investor appetite for leveraged single-stock strategies. Building on this success, $MST adds an income-generation layer designed to provide regular cash distributions and cushion volatility.

According to Defiance’s positioning, the fund bridges two retail investor desires: amplified growth potential coupled with tangible weekly payouts. The credit call spreads methodology generates premium income while simultaneously managing the risks inherent to leverage.

Understanding the Risk Architecture

The fund clearly articulates that leverage introduces significant downside risk. If MicroStrategy’s share price declines, the fund’s value will likely suffer magnified losses. Potential losses can exceed initial investments due to the leveraged structure and derivative complexity.

Key risk factors include:

• Compounding Effects: Daily leverage rebalancing creates return divergence over multi-day holding periods. Extended holding periods rarely match the 150%-200% daily target due to mathematical compounding.
• Volatility Sensitivity: MSTR trades with substantial price swings, which become amplified through the fund’s leverage mechanism.
• Derivative Complexity: Swap contracts and options carry execution risks, basis mismatches, and counterparty considerations distinct from standard equity holdings.
• Portfolio Turnover: Frequent rebalancing increases transaction costs and potential tax consequences for taxable accounts.
• Company-Specific Risk: MSTR faces competition in software, blockchain adoption uncertainties, and dependence on its Bitcoin strategy’s continued viability.

Structural Considerations for Investors

The fund maintains a non-diversified structure, concentrating exposure in a single equity and its correlated derivatives. This approach explicitly contradicts traditional diversification principles. Additionally, as a newly formed fund, it carries limited operating history for performance assessment.

Weekly distributions occur through the options premium collection process rather than traditional dividend mechanics. This income stream is not guaranteed and depends on market volatility levels and options pricing dynamics.

Product Specifications and Mechanics

Defiance ETFs, founded in 2018, specializes in thematic, income, and leveraged exchange-traded products. The $MST fund’s investment adviser is Tidal Investments, LLC. The structure eliminates the need for individual margin accounts while delivering similar economic leverage exposure.

The fund’s prospectus contains detailed risk disclosures, fee schedules, and performance benchmarks. Investors must review these materials carefully before committing capital. Principal loss remains possible, with no guarantee that the fund’s stated strategy will execute as intended.

Shares trade on secondary markets, though brokerage commissions may apply to transactions. For prospectus requests or additional information, Defiance can be reached at 833.333.9383 or info@defianceetfs.com.

The investment world continues to expand options for leveraged equity exposure through regulated vehicles—$MST represents one such evolution in MicroStrategy-specific strategy implementation.