Tuttle Capital Management has partnered with REX Shares to bring out an ETF that tracks Strive, the firm holding 25,000 Bitcoin in its treasury. The fund, called the T-REX 2X Long ASST Daily Target ETF, trades as ASSX on Cboe and is designed to match 200% of Strive’s daily share-price performance prior to fees and expenses.
What the ETF Does
Traders who want to bet on Strive shares with leverage can use the fund, which provides 2x daily exposure to the stock. Because the fund resets its leverage each day, gains over spans longer than one trading session can diverge substantially from double the performance of Strive shares.
ASSX differs from spot Bitcoin ETFs because it does not own Bitcoin or try to follow its price. It offers leveraged exposure to Strive shares directly, which sets it apart from funds that actually purchase the coin. This one instead places its wager on a company that holds the coin.
Who Is Strive
The company Strive trades on public markets and manages a Bitcoin treasury for its shareholders. Per the data from BitcoinTreasuries.NET, it holds 25,000 Bitcoin, which places it among the largest corporate holders of the cryptocurrency by that measure.
Strive used the sale of SATA, its perpetual preferred stock, to pay for its most recent acquisition of 469 BTC. This approach stands out because it demonstrates how the firm raises capital to continue building out its holdings.
How It Compares to Other Leveraged ETFs
Tuttle and REX provide 2x ETFs tied to other firms within the Bitcoin industry.
| ETF | Focus |
|---|---|
| ASSX | Strive shares |
| Strategy | N/A |
| BitMine | N/A |
| Cipher Mining | N/A |
| Circle | N/A |
| SharpLink | N/A |
The First Day
On Friday, Strive’s shares rose 6.4% and closed at $30.09, which was just above the average 12-month price target of $29.40 among analysts tracked by S&P Global.
No opening price for ASSX is given, nor any account of how the stock traded during the early part of the session.
The Daily Reset
Because the numbers start over each day, working through the calculations quickly becomes difficult. Those who own ASSX are placing their money on how Strive performs from one close to the next, rather than on where it might be headed down the road.
The Bottom Line
Tuttle and REX are counting on traders wanting a leveraged way to trade Strive. Whether the wager works will depend on Strive’s share price and on how traders react to the daily-reset arrangement.
The fund currently exists, Strive still owns its Bitcoin, and what comes next is not yet clear.
See the a run of 18 images at Cointelegraph.
Get the Notebook.
The day's best stories and every fresh verdict, in plain English, in your inbox by seven. One email a day, no more.