On September 15, 2x Bitcoin Strategy ETF fell 8.54% in regular trading, trading at $16.25/share, with turnover of $113 million. The sharp decline came as Bitcoin itself dropped below $78,000, dragging down the leveraged ETF by roughly double the magnitude of the underlying move.
The selloff was triggered by fading optimism over the Digital Asset Market Clarity Act (CLARITY Act), a key U.S. regulatory bill aimed at defining oversight boundaries between the SEC and CFTC. Prediction market data showed the probability of the bill passing this year tumbled from above 30% to 18% after Democratic negotiators raised objections to the latest Republican proposal and announced a counter-proposal ahead of a critical procedural vote. Simultaneously, rising interest rate expectations added pressure to risk assets broadly.
Bitcoin had attempted to breach $80,000 multiple times over the past three weeks without sustaining the level. U.S.-listed Bitcoin ETFs recorded over $460 million in net outflows last week, ending a three-week streak of large inflows, while major corporate buyer Strategy paused purchases over the prior two weeks, signaling weakening near-term demand.
The fund generally invests in Bitcoin Futures Contracts through its Subsidiary and in Collateral Investments. The index measures the performance of rolling long positions in the two nearest maturing Bitcoin futures contracts on the CME. The fund is non-diversified.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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