TLDR
- REX Shares launched the GIF ETF, merging nine leveraged covered-call single-stock strategies into one income-focused investment vehicle
- The fund includes cryptocurrency-linked stocks Coinbase and MicroStrategy, alongside Nvidia, Tesla, Palantir, and other major companies
- Each stock position receives approximately 1.25x leverage exposure while generating weekly distributions through covered call option premiums
- 21Shares launched a MicroStrategy preferred stock ETP in Europe (STRC NA) on Euronext Amsterdam in the same timeframe
- MicroStrategy leads large-cap U.S. stocks in short interest according to Goldman Sachs data, with share prices down over 60% in six months
REX Shares, a U.S.-based investment management company, launched a novel exchange-traded fund this week under the ticker symbol GIF. This innovative product merges nine leveraged single-stock covered-call strategies into one comprehensive investment solution designed to generate weekly income distributions for investors.
The fund’s structure maintains equal weighting across nine individual REX single-stock ETFs. Each underlying ETF targets roughly 1.25x leveraged exposure to its corresponding equity while implementing covered call option sales to generate premium income.
Covered call strategies function by writing call options against stocks already owned in the fund. Purchasers of these options pay upfront premiums, generating instant revenue for the portfolio while capping potential gains if the underlying stock appreciates substantially.
Trading for GIF launched on Cboe Global Markets. The nine companies represented in the fund include Nvidia, Tesla, MicroStrategy, Coinbase, Robinhood, Palantir, CoreWeave, Eli Lilly, and Walmart.
Coinbase and MicroStrategy constitute the two cryptocurrency-related investments in the portfolio. Other holdings span artificial intelligence, pharmaceuticals, retail, and general technology sectors.
MicroStrategy, formerly known by its original company name, has become the world’s largest corporate Bitcoin holder. The firm currently holds 717,722 BTC, accounting for roughly 3.4% of Bitcoin’s fixed 21 million coin maximum supply.
Despite this massive Bitcoin treasury, MicroStrategy’s stock has struggled significantly. Shares have tumbled more than 60% over the last six months and approximately 50% during the past twelve months, according to data from Yahoo Finance.
MicroStrategy also holds the distinction of being the most heavily shorted large-cap U.S. stock per Goldman Sachs’ latest research, measured by short interest relative to market capitalization.
MicroStrategy-Linked Products Generate European Market Interest
The GIF launch coincided with significant developments in MicroStrategy-related financial instruments. On Wednesday, 21Shares introduced a new exchange-traded product providing European investors exposure to STRC, MicroStrategy’s variable-rate perpetual preferred stock.
The 21Shares MicroStrategy Yield ETP began trading on Euronext Amsterdam under the ticker STRC NA on Thursday. MicroStrategy describes STRC as a digital credit product delivering an 11.25% annual dividend yield.
This instrument ties directly into MicroStrategy’s Bitcoin holdings and forms part of the company’s broader strategy to develop fixed-income securities supported by its BTC treasury position.
Additionally on Wednesday, both Prevalon Energy and Anchorage Digital announced they had allocated portions of their corporate treasuries to STRC investments. Neither company disclosed specific investment amounts.
How GIF ETF Distributions Work
Income produced by the GIF ETF stems from covered call premiums collected across all nine underlying funds. Each component ETF plans to distribute this income through weekly payment schedules.
The 1.25x leverage component means the fund amplifies both gains and losses compared to owning the stocks directly. Investors trade a portion of upside potential for steady premium income generation.
REX Shares has not disclosed an expected yield percentage for GIF. Weekly distributions will vary depending on market volatility conditions and option pricing factors.
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