When BlackRock’s Ishares Bitcoin Trust (IBIT) option was released on November 19th, trading activity exploded, reaching volumes of over $2 billion on the first day.
At about the same time, multiple net asset values (MNAV) of the Strategy (MSTR). BTC$110,932.31 NAV hit a cycle peak of 3.141 on November 20th. This peak marked Bitcoin prices close to $100,000 and MSTR stocks reached an all-time high of $540.
Since then, the MSTR has decreased by 40% and its MNAV has been compressed to 1.55. At its peak, the strategy held 331,200 BTC. This represents an increase of approximately 305,000 BTC compared to previous holdings.
For a long time, MSTR has provided investors with unique trading vehicles, blending Bitcoin volatility and equity exposure. Traders can be used as leveraged plays in Bitcoin and as equipment for optional strategies. This distinguished it from IBIT. IBIT only exposed directly to Spot Bitcoin, but investors are currently choosing both.
Despite IBIT’s strong debut and steady growth, MSTR has been significantly better since the launch of the Spot Bitcoin ETF in January 2024. MSTR is up over 515% compared to an IBIT 128% increase. In metrics such as historic trading volume and volatility, MSTR continues to outperform IBIT.
Currently, Bitcoin implies a relatively suppressed level of volatility of less than 40. Implicit volatility reflects market expectations for future price fluctuations, and if it is low, traders are less likely to pursue leveraged or options-based strategies. Bitcoin volatility may need to rise to boost its momentum by leveraging products such as MSTR.
