REX Shares Rolls Out New Income‑Focused ETF with Direct Ties to Coinbase, Strategy and Eight Other Stocks
New York, Feb. 22 — US‑based asset manager REX Shares announced the launch of the “REX Growth & Income Universe ETF,” which trades on Cboe Global Markets under the ticker GIF. The fund aggregates leveraged, covered‑call strategies from nine of the firm’s single‑stock Growth & Income ETFs, giving investors diversified exposure to a mix of technology, AI, healthcare, retail and two high‑profile crypto‑linked equities: Coinbase (COII) and MicroStrategy (MSII).
How the ETF is Constructed
GIF holds equal‑weight positions in the following nine REX ETFs, each of which seeks roughly 1.25‑times exposure to its underlying stock while simultaneously writing covered calls on a portion of the portfolio:
| Underlying ETF | Underlying Stock |
|---|---|
| NVII | Nvidia (NVDA) |
| TSII | Tesla (TSLA) |
| MSII | MicroStrategy (MSTR) |
| COII | Coinbase (COIN) |
| HOII | Robinhood (HOOD) |
| PLTI | Palantir (PLTR) |
| CWII | CoreWeave (CW) |
| LLII | Eli Lilly (LLY) |
| WMTI | Walmart (WMT) |
The covered‑call component generates option‑premium income that is distributed to shareholders on a weekly basis. In exchange for this income, the upside potential of the underlying equities is partially capped, a trade‑off that is central to the fund’s “income‑first” ethos.
Strategic Context: Growing Interest in Strategy‑Linked Instruments
The launch of GIF coincides with a broader wave of products that give investors exposure to MicroStrategy’s (MSTR) preferred‑stock instrument, STRC. Earlier this week, European asset manager 21Shares introduced an ETP that tracks STRC, the variable‑rate perpetual preferred stock issued by Strategy. The ETP, listed on Euronext Amsterdam as STRC NA, adds another layer of crypto‑linked fixed‑income exposure for retail investors.
In parallel, Strategy disclosed that corporate treasuries at Prevalon Energy and Anchorage Digital have allocated portions of their cash to STRC, underscoring growing institutional appetite for the company’s crypto‑focused credit instruments. Strategy currently holds roughly 718 k BTC—about 3.4 % of the total 21 million‑coin supply—making it the largest corporate Bitcoin holder.
Market Implications
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Crypto‑Linked Exposure in a Diversified Basket – By bundling Coinbase and MicroStrategy with established large‑cap names, GIF offers investors a way to capture upside (and downside) from the volatile crypto sector without the concentration risk of holding a single crypto‑related stock.
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Leveraged Income Generation – The 1.25× exposure amplifies both price movements and premium income. In a rising market, the levered exposure can boost returns, while in a down market the covered‑call premiums provide a buffer against losses.
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Capped Upside – The covered‑call overlay means that if any of the nine constituents rally sharply—especially the high‑beta crypto‑linked stocks—investors will forfeit a portion of that upside. This trade‑off is especially relevant for Coinbase, whose share price has historically been tied to Bitcoin’s price swings.
- Weekly Distribution Rhythm – The fund’s weekly payout schedule appeals to income‑seeking investors, including those in the crypto space who are accustomed to frequent yield distribution from staking or DeFi protocols.
Analyst Takeaways
| Takeaway | Implication |
|---|---|
| Diversified Crypto Exposure | Provides a single‑ticket route to two of the most visible crypto‑related equities while spreading risk across non‑crypto sectors. |
| Income Emphasis | Weekly premium‑derived distributions may attract yield‑hungry investors, but the strategy is not suitable for those seeking pure capital appreciation. |
| Leverage + Options Overlay | Amplifies both potential gains and losses; investors should be comfortable with the mechanics of covered calls and the associated upside cap. |
| Market Timing Sensitivity | In a strong bull market, especially with a rally in Bitcoin, the capped upside might underperform a pure long‑only position in Coinbase or Strategy. Conversely, in sideways or mildly bearish conditions, the premium income can improve overall returns. |
| Regulatory Considerations | As with all leveraged and options‑based ETFs, the product is subject to stricter SEC oversight, and investors should verify suitability under their risk tolerance. |
Outlook
The launch of GIF reflects a scaling trend in the asset‑management industry: blending traditional equity exposure with crypto‑centric names through structured, income‑oriented vehicles. By integrating leveraged covered‑call tactics, REX Shares aims to appeal to investors who desire the upside potential of high‑growth stocks—particularly those with crypto connections—while seeking a steadier cash flow.
Whether GIF will become a staple for crypto‑inclined income investors will largely depend on the performance of its two crypto‑linked components and the broader trajectory of Bitcoin and digital asset markets. For now, the product offers a novel way to capture weekly income from a diversified basket that includes some of the most talked‑about crypto‑related equities on the market.
Source: https://cointelegraph.com/news/rex-launches-income-etf-bundling-leveraged-covered-call-exposure-to-coinbase-strategy-and-other-growth-stocks?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
