A U.S.-listed exchange-traded fund (ETF) offering leveraged bearish exposure to shares in bitcoin (BTC) holder MicroStrategy (MSTR) has recently attracted millions in investor money as its prices hit record lows. The Defiance Daily Target 2x Short MSTR ETF, listed under the ticker SMST on Nasdaq, has registered a net inflow of over $24 million since July 11, according to data tracked by VettaFi . The net inflow tallied over $10 million on July 16 alone, the biggest single-day total since March 26. The inflow likely represents bargain hunting at cheaper valuations. SMST fell to a high-volume record low of $17.68 last week as bitcoin's bull run gathered pace, with prices hitting highs above $120,000. MSTR's share price hit an eight-month high of $456. The 2x short ETF seeks to deliver daily investment results that are -200%, or minus 2x, the daily percentage change in the MSTR share price. The fund represents a bearish leveraged bet on MSTR. The ETF's price rose 12% on Friday, nearing a log-scaled bearish trendline, which represents the sell-off since inception in August 2024. On Monday, it traded flat at around $20. Long ETF bleeds money The apparent bargain hunting in the short ETF has coincided with outflows from its 2x bullish counterpart, suggesting a potential shift in investor sentiment or a recalibration of directional bets. The Defiance Daily Target 2X Long MSTR ETF (MSTX) registered a net outflow of over $118 million since July 11. The fund's price fell 12% on Friday to $42.30 and traded around the same price yesterday. Read more: Strategy Aims to Raise Another $500M for Bitcoin Buys With New Preferred Series
