TLDR
- REX Shares introduced the GIF ETF, combining nine leveraged covered-call strategies focused on individual stocks into a single income-generating vehicle
- Holdings feature cryptocurrency-exposed companies Coinbase and Strategy, plus major names like Nvidia, Tesla, and Palantir
- The fund seeks 1.25x leveraged exposure to each stock while distributing weekly income generated from covered call option premiums
- 21Shares introduced a Strategy preferred stock ETP in European markets (STRC NA) via Euronext Amsterdam this week
- According to Goldman Sachs’ recent data, Strategy has emerged as the most heavily shorted large-cap stock in the US, with shares plunging more than 60% over half a year
REX Shares, an American asset management firm, rolled out a new exchange-traded fund this week trading under the ticker symbol GIF. The offering packages nine leveraged covered-call strategies based on individual stocks into a unified product structured to deliver weekly income to shareholders.
The fund maintains equal-weighted allocations across nine separate REX single-stock ETFs. Each constituent ETF seeks approximately 1.25x leveraged exposure to its respective equity while simultaneously selling covered call options to capture premium income.
Covered calls involve selling call options on equities the fund already holds in its portfolio. Option buyers pay an upfront premium, providing immediate income to the fund while limiting potential gains if the underlying stock experiences significant price appreciation.
GIF is listed on Cboe Global Markets. The portfolio comprises nine stocks: Nvidia, Tesla, Strategy, [[LINK_START_0]]Coinbase[[LINK_END_0]], Robinhood, Palantir, CoreWeave, Eli Lilly, and Walmart.
Coinbase and Strategy represent the cryptocurrency-adjacent holdings within the portfolio. The remaining companies represent diverse sectors including artificial intelligence, pharmaceuticals, consumer retail, and technology.
Strategy, previously operating under the name MicroStrategy, has accumulated the world’s largest corporate Bitcoin position. The company presently holds 717,722 BTC, representing approximately 3.4% of Bitcoin’s maximum 21 million coin supply.
Despite this substantial cryptocurrency position, Strategy’s equity performance has been weak. According to Yahoo Finance, the stock has declined more than 60% during the last six months and roughly 50% year-over-year.
Strategy now ranks as the most heavily shorted large-cap equity in the United States based on Goldman Sachs’ most recent analysis, which measures short interest as a percentage of market capitalization.
Strategy-Linked Securities Draw New Interest in Europe
The GIF ETF debut coincided with heightened activity around Strategy-related investment products. On Wednesday, 21Shares unveiled a new exchange-traded product offering European investors access to STRC, Strategy’s variable-rate perpetual preferred equity.
The 21Shares Strategy Yield ETP commenced trading on Euronext Amsterdam under ticker STRC NA on Thursday. Strategy markets STRC as a digital credit instrument delivering an 11.25% annualized dividend yield.
This security is connected to Strategy’s Bitcoin reserves and forms part of the company’s broader initiative to issue debt-like instruments backed by its cryptocurrency holdings.
Also on Wednesday, both Prevalon Energy and Anchorage Digital revealed they had added STRC allocations to their corporate treasury portfolios. Neither organization revealed the specific amounts of their investments.
What the GIF ETF Actually Pays Out
Distributions from the GIF ETF originate from covered call premiums generated across the nine underlying fund positions. Each component ETF is structured to pay out this income weekly.
The 1.25x leverage multiplier means the fund magnifies both positive and negative performance relative to direct stock ownership. Participants sacrifice a portion of potential upside appreciation in return for consistent premium income streams.
REX Shares has not announced a specific yield target for GIF. Weekly distribution amounts will fluctuate based on prevailing market volatility levels and option pricing dynamics.
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