## $MST ETF Kicks Off With Strong First Weekly Payout—Here's What You Need to Know

Defiance ETFs has launched an innovative approach to MicroStrategy exposure with its new Defiance Leveraged Long + Income MSTR ETF ($MST), unveiling its inaugural weekly distribution of $0.3350 per share as of May 22, 2025. The product represents a fresh take on how investors can gain amplified access to MSTR while simultaneously collecting regular income.

### The Product Design: 150% to 200% Leverage Plus Weekly Payouts

What sets $MST apart is its dual mandate. The fund targets 150% to 200% of MicroStrategy's daily price movement, meaning a 1% move in MSTR can translate to a 1.5% to 2% move in $MST—an appealing proposition for investors seeking enhanced exposure to the company's volatility and upside potential. Simultaneously, the ETF employs a credit call spreads strategy to generate consistent weekly income. This options-based approach allows $MST to harvest premium income throughout market cycles, distributing proceeds to shareholders on a weekly cadence rather than quarterly or annually like traditional funds.

### Indirect Bitcoin Play Without Direct Crypto Ownership

Beyond the MSTR leverage component, $MST provides indirect Bitcoin exposure through MicroStrategy's substantial cryptocurrency holdings. For investors intrigued by Bitcoin's market dynamics but uncomfortable with direct cryptocurrency ownership—whether due to custody concerns, regulatory uncertainty, or preference for traditional brokerage accounts—this structure offers an alternative route.

### First Distribution and Performance Snapshot

The inaugural distribution details tell the story of a newly minted fund ramping up income generation. As of May 22, 2025, the estimated return of capital stood at 99.29%. Since $MST's inception on May 1, 2025, the fund carries a gross expense ratio of 1.31%, with a 30-Day SEC Yield currently pending publication. Investors should note that $MST shares hit the market just three weeks prior to this first distribution announcement, making performance history limited but the income generation immediate.

### Critical Risk Factors to Consider

Leverage cuts both ways. While $MST can amplify gains during MSTR rallies, the same 150% to 200% multiplier intensifies losses during downturns. Investors face compounding risk from daily rebalancing—the fund's performance over multi-day periods may deviate substantially from the stated target multiple due to daily reset mechanics. Additionally, the reliance on options and swaps introduces derivative-related risks: imperfect correlation with underlying assets, potential losses exceeding initial capital, and sensitivity to implied volatility shifts. As a brand-new fund with zero operating history, $MST also carries execution risk and offers investors no historical track record for performance comparison. Bitcoin volatility—transmitted indirectly through MSTR's holdings—adds another layer of uncertainty.

### The Fine Print: How Distributions Work

The Distribution Rate cited is calculated by annualizing the most recent declared distribution and dividing by the fund's current NAV. This annualized figure is not guaranteed, and the 30-Day SEC Yield may diverge significantly from future distributions, which could approach zero. Distributions may include ordinary dividends, capital gains, and return of capital, all of which can erode NAV and the ETF's trading price over extended periods. The 99.29% return of capital figure for the first distribution warrants special attention—it suggests that nearly all of the payout came from the fund's own assets rather than earnings, a consideration for long-term holders.

### About the Fund Structure

Defiance ETFs (founded 2018) serves as the ETF sponsor, with Tidal Investments LLC handling investment advisory duties and Tidal ETF Services LLC administering the fund. Distribution falls to Foreside Fund Services LLC. The prospectus, available via 833.333.9383 or the fund's official channels, contains the complete risk disclosure and should be reviewed carefully before investing.