REX Shares Introduces Diversified Crypto-Linked Fund

The financial landscape continues to evolve with innovative investment strategies emerging. One such example is the REX Growth & Income Universe ETF (GIF), launched by REX Shares. This fund combines nine existing exchange-traded funds (ETFs) to provide a diversified portfolio, encompassing various sectors, including technology, retail, healthcare, and cryptocurrency-related assets.

The GIF ETF employs a unique structure that incorporates modest leverage and covered calls to generate weekly income for investors. In contrast to traditional crypto-pegged ETFs, REX's model focuses on diversification, positioning it as a viable alternative in the current market environment. By spreading risk across multiple assets, this fund aims to mitigate potential losses associated with single-asset exposure.

The GIF ETF's underlying structure is characterized by 1.25x exposure to each stock and uses covered calls on approximately half of its holdings. This approach seeks to balance steady income generation with the potential for sustained stock price appreciation. However, critics argue that this strategy may cap upside potential in an environment where halving returns are already shrinking due to increased ETF flows.