REX Shares launches new income-generating ETF featuring Coinbase, Strategy, and major tech equities
REX's newly introduced GIF ETF incorporates nine different leveraged single-stock approaches within one portfolio, engineered to produce weekly returns via covered call option strategies.
American asset management firm REX Shares has introduced a new exchange-traded fund that consolidates leveraged covered-call approaches linked to nine separate stocks, incorporating cryptocurrency-related companies Coinbase and Strategy, packaged into one income-oriented investment vehicle that trades with the ticker symbol GIF.
Based on the announcement made Thursday, the product maintains equal-weighted allocations across REX's current single-stock Growth & Income ETFs, with each one pursuing approximately 1.25x leveraged exposure to its corresponding stock while employing covered calls on a segment of holdings to create option premium revenue.
The GIF fund is listed on Cboe Global Markets, and every constituent ETF aims to provide distributions on a weekly schedule, with the majority of returns coming from premiums generated through covered call writing.
The premiums from covered calls represent the initial payments received by a fund when it sells options against stocks already held in the portfolio, creating revenue streams while accepting limitations on potential gains from those underlying shares.
According to REX Shares, the ETF maintains equal-weighted positions across nine REX products connected to Nvidia (NVII), Tesla (TSII), Strategy (MSII), Coinbase (COII), Robinhood (HOII), Palantir (PLTI), CoreWeave (CWII), Eli Lilly (LLII) and Walmart (WMTI), covering cryptocurrency-related stocks, technology, AI, healthcare and retail industries.
21Shares lists STRC ETP as companies add Strategy preferred shares to treasuries
This product debut arrives during a week marked by fresh investments connected to Strategy-related financial instruments.
During Wednesday's trading session, 21Shares unveiled an exchange-traded product (ETP) providing European market participants with access to STRC, which represents Strategy's variable-rate perpetual preferred stock. The 21Shares Strategy Yield ETP commenced trading on Euronext Amsterdam under ticker symbol STRC NA on Thursday.
Additionally on Wednesday, Strategy announced that Prevalon Energy, a company focused on energy infrastructure, along with Anchorage Digital, a digital asset bank specializing in cryptocurrency services, had directed portions of their corporate treasury holdings into STRC, although the exact amounts of their investments were not made public.
Strategy characterizes STRC as a digital credit instrument offering an 11.25% annual dividend, representing part of the company's wider initiative to create fixed-income securities backed by its Bitcoin (BTC) reserves.
Following the implementation of its Bitcoin treasury approach in August 2020, Strategy has risen to become the top corporate holder of Bitcoin, disclosing ownership of 717,722 BTC, representing approximately 3.4% of the total fixed 21 million coin supply.
Notwithstanding the appetite for Strategy-related financial products, the company's stock has declined in tandem with Bitcoin's price movements. Shares have tumbled more than 60% during the previous six months and roughly 50% across the past year, based on data from Yahoo Finance.
Strategy has additionally become the most heavily shorted large-cap US stock according to Goldman Sachs' most recent rankings, determined by short interest as a proportion of market capitalization.