Blockstream CEO Adam Back has publicly blasted the Defiance 2X Short MSTR ETF. He labeled the product “awful” and then questioned its longevity. The ETF wants to short MicroStrategy Incorporated, which has substantial Bitcoin portfolios. Back’s greatest problem would be the inherent threat of the ETF technique, particularly with Bitcoin so volatile and so highly linked with MicroStrategy’s stock.
The second-biggest Bitcoin owner is MicroStrategy, which has more than 210,000 BTC. The ETF, which monitors the company’s shares to shorten, has sparked discussion. Adam Back discusses the hazards of shorting an asset whose price action is related to Bitcoin’s value patterns. He claims the plan could cause substantial losses, “especially when Bitcoin rose in value.”
Adam Back Warns Against New MSTR ETF
The Defiance 2X short MSTR ETF utilizes auto rebalancing and doubles down on Short positions. However, Adam Back details the dangers of this type of strategy in an uncertain mark
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