Diversification stays central to investor technique.
Leaning into that, REX Shares has introduced the REX Progress & Revenue Universe ETF (GIF). It combines its 9 ETFs right into a single fund, providing “diversified” publicity that features crypto-linked belongings.
In different phrases, not like conventional Bitcoin [BTC] or Ethereum [ETH] ETFs that monitor a single asset class, GIF spreads danger throughout a number of shares spanning tech, retail, healthcare, and crypto-related sectors, making it a structurally broader funding method.
Supply: Businesswire
Wanting on the particulars, three of the 9 underlying ETFs are straight crypto-linked – MSII (Technique, identified for its BTC holdings), COII (Coinbase, a crypto alternate), and HOII (Robinhood, which gives crypto buying and selling).
From a construction standpoint, every ETF targets 1.25x publicity to its inventory and makes use of coated calls on roughly half of its holdings to generate weekly revenue. All whereas the remaining stays invested to profit if the inventory value rises.
In sensible phrases, REX Shares is attempting to combine regular revenue with sustained inventory upside, whereas maintaining diversification intact. Nonetheless, as famous by AMBCrypto, this additionally raises a structural query.
Latest cycles have seen halving returns shrink amid heavier ETF flows. In such an atmosphere, does REX Shares’ method mirror a shift in direction of extra risk-managed crypto publicity, or does it danger additional capping the upside?
REX Shares’ revenue technique meets post-halving actuality
The distinction between conventional ETFs and REX lies within the construction.
Traditional ETFs usually monitor an index (like Bitcoin), keep 1x publicity, and depend on value appreciation for returns. REX’s mannequin, against this, layers in leverage and coated calls to generate weekly revenue.
Why does that matter? As AMBCrypto notes, that is the place the shift turns into clear. REX Shares is leaning in direction of “engineered yield” over pure crypto beta, reflecting the cooling momentum seen in conventional ETFs.
Supply: TradingView (IBIT/USD)
Take BlackRock’s iShares Bitcoin Belief (IBIT) as a working example.
In risk-off markets, IBIT sees vital outflows, amplifying downside pressure. With two consecutive detrimental quarters, the fund has declined by practically 50%, underscoring the volatility tied to single-asset publicity.
The outcome? Extended outflows restrict BTC accumulation. REX Shares, alternatively, focuses on a mixture of diversified publicity and revenue era relatively than relying solely on value actions. This makes it higher aligned to the present post-halving market actuality.
Ultimate Abstract
- REX Shares’ GIF combines 9 ETFs, utilizing modest leverage and coated calls to generate weekly revenue.
- Not like pure crypto ETFs, REX’s construction emphasizes diversification, making it higher aligned with the present post-halving market atmosphere.
