US asset manager REX Shares has launched an exchange-traded fund that combines leveraged covered-call strategies tied to nine single-stock ETFs into one income-focused product trading under the ticker GIF. The fund holds equal-weighted positions in REX’s existing single-stock Growth & Income ETFs; each underlying ETF targets roughly 1.25x exposure to its equity while writing covered calls on part of the position to generate option premium income.
GIF trades on Cboe Global Markets and the underlying funds aim to pay distributions weekly, with payouts primarily sourced from covered-call premiums. Covered-call premiums are the upfront payments a fund collects for selling call options on stocks it owns, producing income in exchange for limiting some upside.
REX said GIF provides equal-weighted exposure to nine of its funds tied to Nvidia (NVII), Tesla (TSII), Strategy (MSII), Coinbase (COII), Robinhood (HOII), Palantir (PLTI), CoreWeave (CWII), Eli Lilly (LLII) and Walmart (WMTI), spanning crypto-linked equities, technology, AI, healthcare and retail sectors.
The launch coincides with fresh allocations linked to Strategy-related securities in Europe. 21Shares recently introduced an exchange-traded product that gives 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.
Strategy also said that Prevalon Energy, an energy infrastructure company, and Anchorage Digital, a crypto-focused digital asset bank, allocated portions of their corporate treasuries to STRC, though they did not disclose position sizes. Strategy describes STRC as a digital credit instrument carrying an 11.25% annual dividend, part of the company’s broader effort to issue fixed-income securities tied to its Bitcoin holdings.
Since adopting a Bitcoin treasury strategy in August 2020, Strategy has grown into the largest corporate holder of Bitcoin, reporting 717,722 BTC — roughly 3.4% of the fixed 21 million supply. Despite demand for Strategy-linked products, the company’s shares have fallen with Bitcoin’s price, trading down more than 60% over the past six months and about 50% over the past year by Yahoo Finance data. Strategy has also emerged as the most heavily shorted large-cap U.S. stock in Goldman Sachs’ recent ranking, based on short interest relative to market value.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy at https://cointelegraph.com/editorial-policy
