REX launches 2x leveraged ETF tied to Bitcoin treasury firm Strive
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
REX Shares and Tuttle Capital Management launched the T-REX 2X Long ASST Daily Target ETF (ticker ASSX) on Cboe, which seeks to deliver twice the daily performance of Strive, a publicly traded Bitcoin treasury company and asset manager. The fund uses daily reset leverage to aim for 200% of Strive’s daily share price performance before fees and expenses, providing leveraged exposure to Strive shares rather than to Bitcoin itself.
Why it matters
The launch introduces a new leveraged ETF product tied to a Bitcoin treasury firm, offering investors a novel way to gain amplified exposure to a company holding substantial Bitcoin assets. The source does not elaborate on broader market or policy implications of this development.
Key context
Strive is a publicly traded company that holds 25,000 Bitcoin, ranking it as the fifth-largest publicly traded corporate Bitcoin holder. Its most recent Bitcoin purchase of 469 BTC was financed by sales of perpetual preferred stock (SATA). Unlike spot Bitcoin ETFs, ASSX does not hold Bitcoin or track its price directly but rather focuses on the performance of Strive shares. REX and Tuttle also provide similar 2x ETFs linked to other crypto-related firms such as Strategy, BitMine, Cipher Mining, Circle, and SharpLink.
Key numbers and entities
The ETF ticker is ASSX. Strive holds 25,000 Bitcoin. Its latest purchase involved 469 BTC. On the Friday launch day, Strive shares closed at $30.09, above a 12-month average price target of $29.40 based on analyst data from S&P Global. REX Shares and Tuttle Capital Management are the ETF issuers.
What remains unclear
The source does not specify the expected market demand for ASSX, detailed risk considerations for investors, or how this product might impact the broader Bitcoin ETF market. It also lacks commentary on regulatory aspects or potential future expansions of leveraged ETFs related to crypto treasury firms.