Key Highlights
- ASST shares climbed 6% on Friday, closing at $30.09 following the introduction of a new 2x leveraged ETF.
- The ASSX ETF was introduced by REX Shares and Tuttle Capital Management on Cboe beginning Sept. 18.
- The fund seeks to deliver 200% of ASST’s daily returns before accounting for fees and costs.
- As of Sept. 11, Strive’s Bitcoin treasury contained 25,000 BTC following a 469 BTC acquisition.
- The ASSX fund features a 1.5% expense ratio and is intended primarily for day traders due to daily leverage rebalancing.
Shares of Strive (ASST) advanced 6.4% on Friday, finishing the trading day at $30.09 as market participants welcomed a new leveraged instrument for trading the Bitcoin treasury firm. Intraday price action saw the stock fluctuate between $29.33 and $30.38.
Approximately 16.1 million shares changed hands during Friday’s session. The advance built on Thursday’s 3.17% increase, which brought ASST to a close of $28.28.
REX Shares partnered with Tuttle Capital Management to debut the T-REX 2X Long ASST Daily Target ETF on Sept. 18. The product began trading on Cboe under the symbol ASSX.
The ASSX fund aims to generate 200% of the daily percentage change in Strive’s stock price, net of fees and operating expenses. This marks the first exchange-traded fund in the United States offering 2x daily long leverage specifically targeting ASST shares.
New ASSX Fund Provides Amplified Daily Returns on ASST
The fund’s leverage mechanism resets at the close of each trading day. Consequently, its multi-day returns may diverge significantly from double the corresponding move in Strive stock over identical periods.
ASSX maintains no direct Bitcoin position and does not seek to replicate Bitcoin’s price movements. Instead, it focuses exclusively on magnifying the daily fluctuations of Strive’s common shares.
To accomplish its leveraged objective, the fund may employ derivative instruments such as swap contracts. REX has disclosed a total expense ratio of 1.5% for ASSX.
Should ASST decline 1% in a single day, ASSX would typically fall approximately 2% before accounting for borrowing costs and fund expenses. REX has cautioned that a daily ASST loss exceeding 50% could potentially eliminate an investor’s entire position.
ASSX concluded its debut trading session at $28.27 after opening at $27.78. The fund ranged between $27.22 and $28.70 throughout the day, with trading volume reported at 123,946 shares.
Extended-hours trading later showed ASSX at $28.71. REX and Tuttle previously introduced leveraged products tracking Strategy, BitMine, Cipher Mining, Circle, and SharpLink.
Strive Expands Bitcoin Treasury to 25,000 BTC
The ETF launch coincides with Strive’s ongoing expansion of its Bitcoin reserves. The company disclosed holdings of 25,000 BTC as of Sept. 11.
Between Sept. 8 and Sept. 11, Strive acquired 469 BTC at an average cost of $77,954 per coin. This transaction increased the company’s position from 24,531 BTC.
During the preceding week, the firm had purchased 1,375 BTC for approximately $109 million. An additional acquisition in late August added 1,800 BTC valued at roughly $143 million.
According to BitcoinTreasuries.net, Strive currently ranks fifth among publicly listed corporate Bitcoin holders. The company trails Strategy, Twenty One Capital, Metaplanet, and MARA Holdings.
Strive’s most recent filing indicated cash and cash equivalents totaling $204.2 million. The company also maintained 505,000 Strategy STRC preferred units with an estimated value of approximately $49.8 million.
CEO Matt Cole disclosed that funding for the most recent Bitcoin acquisition originated from SATA preferred stock proceeds. SATA maintains a regular annual dividend rate of 13% for periods commencing on or after Oct. 1.
Strive’s verified Bitcoin balance stands at 25,000 BTC as of the last reporting date. Subsequent acquisitions will require disclosure through official company announcements or regulatory submissions.
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