REX Debuts GIF Income ETF of Covered Calls on Coinbase, Strategy
REX Shares has introduced an exchange-traded fund that consolidates nine leveraged covered-call strategies tied to individual stocks, including Coinbase and Strategy, into a single income-oriented product trading under the ticker GIF.
According to a Thursday announcement, the fund holds equal-weight positions in REX’s existing single-stock Growth & Income ETFs. Each underlying ETF targets approximately 1.25x exposure to its respective stock and writes covered calls on part of the portfolio to generate option premium income.
GIF is listed on Cboe Global Markets. Each component ETF seeks to distribute income weekly, with payments primarily derived from covered call premiums.
Covered call premiums are the upfront proceeds received from selling call options on stocks the fund already owns, providing income in exchange for limiting a portion of the shares’ upside.
REX Shares said the ETF provides equal-weight exposure to nine REX funds linked to Nvidia (NVII), Tesla (TSII), Strategy (MSII), Coinbase (COII), Robinhood (HOII), Palantir (PLTI), CoreWeave (CWII), Eli Lilly (LLII) and Walmart (WMTI), covering crypto-related equities, technology, AI, healthcare and retail.
21Shares lists STRC ETP as firms add Strategy preferred shares to treasuries
The launch comes during a week of new allocations to Strategy-linked securities. On Wednesday, 21Shares unveiled an exchange-traded product (ETP) offering European investors exposure to STRC, Strategy’s variable-rate perpetual preferred stock. The 21Shares Strategy Yield ETP began trading on Euronext Amsterdam under the ticker STRC NA on Thursday.
Also on Wednesday, Strategy said Prevalon Energy, an energy infrastructure firm, and Anchorage Digital, a crypto-focused digital asset bank, allocated portions of their corporate treasuries to STRC. The companies did not disclose the sizes of their positions.
Strategy describes STRC as a digital credit instrument with an 11.25% annual dividend, part of a broader initiative to issue fixed-income securities tied to its Bitcoin (BTC) holdings.
Strategy’s BTC holdings over time. Source: Bitbo.io
Since adopting its Bitcoin treasury strategy in August 2020, Strategy has become the largest corporate holder of Bitcoin, reporting 717,722 BTC, or about 3.4% of the fixed 21 million supply.
Despite demand for Strategy-linked securities, the company’s shares have declined alongside Bitcoin’s price. The stock is down more than 60% over the past six months and about 50% over the past year, according to Yahoo Finance data.
Strategy has also appeared as the most heavily shorted large-cap U.S. stock on Goldman Sachs’ latest ranking, measured by short interest relative to market value.
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