Investors seeking leveraged exposure to Bitcoin’s price may be in store for some spicy TradFi products, following the T-Rex Group’s filing for several MicroStrategy ETFs on Thursday.

The issuer of leveraged funds for tech giants like Tesla and Nvidia signaled that the Bitcoin-hungry software firm is next up on its plate. T-Rex submitted applications for two ETFs—one that would deliver 2x long performance on MicroStrategy’s stock—alongside a correlating inverse option, according to filings with the U.S. Securities and Exchange Commission (SEC).

The spiciness associated with digital assets may already be too hot to handle for some. And according to Bloomberg ETF analyst Eric Balchunas, T-Rex’s proposed ETFs are positioned toward the particularly pungent end of the scoville scale, used to measure the strength of chilis.

“These are a near-lock to be most volatile ETFs ever seen in the U.S.,” he wrote on Twitter (aka X), describing the set of products as “the ghost pepper of ETF hot sauce.”

Because MicroStrategy utilizes debt and equity to acquire more Bitcoin, the firm could already be viewed as a leveraged play on Bitcoin. Instead of simply holding Bitcoin as an investment vehicle, such as spot Bitcoin ETFs, MicroStrategy has leveraged tools to accumulate the asset.

Earlier this month, MicroStrategy unveiled plans to issue $700 million worth of unsecured senior convertible notes to add to its enormous stash of Bitcoin. It ultimately boosted its holdings to 226,331 BTC after the purchase, or about $13.8 billion worth as of this writing. Within crypto, the company has cultivated a reputation for being Bitcoin’s largest corporate holders.

Balchunas has previously compared spot Bitcoin ETFs to hot sauce, suggesting a dash of exposure in the average investor’s portfolio is a palatable pathway for most. Most people are “just going to add a little bit,” he wrote of spot Bitcoin ETFs in April.

Since MicroStrategy embarked on its Bitcoin buying spree, the company has faced significant price swings at times. Its largest single-day drawdown took place in May of 2022, plummeting 25% amid fallout in the crypto market, according to Market Chameleon.

That said, MicroStrategy’s stock price has rocketed 109% to $1,433 so far this year, aided by the approval of spot Bitcoin ETFs, which gave investors more exposure options in January. Previously, MicroStrategy was viewed as a popular proxy bet toward Bitcoin on Wall Street.

Edited by Andrew Hayward