Rex Shares launches leveraged covered-call ETF including Coinbase and Strategy

JH Kim

Summary

  • Rex Shares reported that it has launched a leveraged covered-call ETF that includes virtual-asset-related stocks such as Coinbase and Strategy.
  • It said the ETF is structured to pursue 1.25x exposure and cash flow via option premiums through a covered-call strategy that buys the underlying assets and sells call options.
  • Holdings include Nvidia, Tesla, Robinhood, Palantir, CoreWeave, Eli Lilly, and Walmart, and it added that structured ETFs are increasing rapidly amid rising volatility in virtual-asset- and AI-related stocks.

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According to Cointelegraph, a media outlet specializing in virtual assets (cryptocurrencies), U.S. asset manager Rex Shares has launched a leveraged covered-call exchange-traded fund (ETF) that includes virtual-asset-related stocks such as Coinbase and Strategy.

The ETF employs a covered-call strategy—buying the underlying assets while selling call options—and targets 1.25x exposure to the underlying. The structure seeks additional gains in rising markets while aiming to generate cash flow through option premiums.

In addition to Coinbase and Strategy, holdings include Nvidia (NVII), Tesla (TSII), Robinhood (HOII), Palantir (PLTI), CoreWeave (CWII), Eli Lilly (LLII), and Walmart (WMTI).

As volatility in virtual-asset- and AI-related stocks has increased recently, analysts note that structured ETF products combining options strategies are growing rapidly.

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JH Kim

reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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