The GRNY ETF, managed by Chairman of BitMine Tom Lee, has boosted its holdings in Strategy (MSTR) stock to a large extent, resulting in the company becoming its largest holding. This change occurred just a few weeks before the rise in the value of MSTR stock by 46%.
GRNY ETF Makes MSTR Its Top Holding
Based on the data presented for historical portfolios by Bloomberg ETF analyst Eric Balchunas, GRNY ETF experienced a significant shift in its allocation strategy during its quarter-end rebalance for August 2026.
The previous allocation strategy was estimated to be approximately 0.45% to 0.50%. Within two weeks, it rose to about 3.02%, thus shifting MSTR from the smallest holding in the fund to the largest.
This increase placed Strategy above Robinhood (HOOD), with it making up 2.99% of the total portfolio.
As stated by Tom Lee, the rebalancing process led to many additions and deletions in the large, small, and mid-cap stocks. After the process, the total assets under management for the Granny Shots portfolio are $5.1 billion, and the GRNY ETF stands at around $4.489 billion.
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Why Did GRNY ETF Increase Its MSTR Position?
However, the growth in Strategy may not necessarily be a short-term market call. The GRNY ETF uses an investment approach that is based on the principles developed by Fundstrat and the quantitative selection of stocks.
The stocks should usually meet at least two of the seven investment themes from Fundstrat in order to be included in the portfolio. This process is done quarterly.
Strategy has many of these themes because of its substantial ownership of Bitcoin as well as its association with technology and evolving finance. Fundstrat has also been building its portfolio to include quality growth stocks, quality cyclicals, and stocks that would benefit from an increase in artificial intelligence.
According to Lee, the recent rebalance of Granny Shots has been driven by a transition towards quality growth stocks and quality cyclicals owing to the current interest rate environment.
However, that does not necessarily imply that the GRNY ETF will keep on adding to its MSTR stake during future rebalances. The fund is flexible and can change its portfolio based on the prevailing market trends and the continued relevance of the companies. For now, however, Strategy remains the largest holding in the ETF.
MSTR Outperforms Bitcoin
The time at which the GRNY ETF’s increased its involvement has become interesting because Strategy saw a significantly higher rise compared to Bitcoin.
MSTR went up by almost 46%, touching $142.80, whereas Bitcoin saw gains of about 26%.
The rise in Strategy’s share was seen after it started buying Bitcoin again. Strategy purchased 4,603 BTC for about $369.7 million as Bitcoin rose back above $81,000.
Since Strategy owns such a large portion of Bitcoin, MSTR is considered by investors as a means of getting more exposure to Bitcoin through its price fluctuations. If Bitcoin surges dramatically, MSTR has the tendency to experience an even bigger percentage gain than Bitcoin.
Thus, the fact that the GRNY ETF has decided to make MSTR its biggest holding increases its exposure to Strategy and Bitcoin.
This move highlights how a major portfolio reallocation may put an ETF in a favorable position prior to a big move in one of the holdings.
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