REX Shares Launches GIF ETF Covering Coinbase (COIN) and Strategy (MSTR) With Weekly Income Payouts

TLDR

• REX Shares launched a new ETF called GIF, bundling nine leveraged covered-call single-stock strategies into one income-focused fund
• The fund includes crypto-linked stocks Coinbase and Strategy, alongside Nvidia, Tesla, Palantir, and others
• GIF targets 1.25x exposure to each underlying stock and pays out weekly income from covered call premiums
• 21Shares launched a Strategy preferred stock ETP in Europe (STRC NA) on Euronext Amsterdam this week
• Strategy is now the most heavily shorted large-cap US stock on Goldman Sachs’ latest ranking, with shares down over 60% in six months

REX Shares, a US-based asset manager, launched a new exchange-traded fund this week under the ticker GIF. The fund bundles nine leveraged single-stock covered-call strategies into one product, designed to pay investors weekly income.

The fund holds equal-weighted positions across nine REX single-stock ETFs. Each underlying ETF targets roughly 1.25x exposure to its stock while selling covered call options to generate premium income.

A covered call means the fund sells options on stocks it already owns. The buyer pays a premium upfront, giving the fund income in exchange for capping how much it benefits if the stock price rises sharply.

GIF trades on Cboe Global Markets. The nine stocks in the fund are Nvidia, Tesla, Strategy, Coinbase, Robinhood, Palantir, CoreWeave, Eli Lilly, and Walmart.

Coinbase and Strategy are the two crypto-linked names in the group. The rest span AI, healthcare, retail, and technology sectors.

Strategy, formerly known as MicroStrategy, has become the largest corporate holder of Bitcoin. It currently holds 717,722 BTC, roughly 3.4% of Bitcoin’s fixed 21 million supply.

Despite that position, Strategy’s stock has struggled. Shares are down more than 60% over the past six months and about 50% over the past year, according to Yahoo Finance data.

Strategy is also now the most heavily shorted large-cap US stock on Goldman Sachs’ latest ranking, measured by short interest relative to market value.

Strategy-Linked Securities Draw New Interest in Europe

The GIF launch came during a busy week for Strategy-related products. On Wednesday, 21Shares introduced a new exchange-traded product giving 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. Strategy describes STRC as a digital credit instrument with an 11.25% annual dividend.

The product is tied to Strategy’s Bitcoin holdings and is part of the company’s wider push to issue fixed-income securities linked to its BTC treasury.

Also on Wednesday, Prevalon Energy and Anchorage Digital both announced they had allocated portions of their corporate treasuries to STRC. Neither company disclosed the size of their positions.

What the GIF ETF Actually Pays Out

Income from the GIF ETF comes from covered call premiums collected across all nine underlying funds. Each underlying ETF aims to distribute that income on a weekly basis.

The 1.25x leverage means the fund amplifies both gains and losses compared to simply holding the stocks. Investors give up some upside in exchange for the regular premium income.

REX Shares has not disclosed a target yield for GIF. The fund’s weekly distributions will vary depending on market volatility and option pricing conditions.

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