REX Shares and Tuttle Capital Management have officially brought the T-REX 2X Long ASST Daily Target ETF to the Cboe exchange. The instrument, trading under the ticker ASSX, was launched with one primary goal: delivering 200% daily returns based on the performance of Strive equity shares, before fees and routine operational expenses.
Strive holds a key position in the corporate crypto landscape. Recent data from tracking platform BitcoinTreasuries.NET ranks Strive as the fifth-largest publicly traded corporate holder of Bitcoin globally. The company manages a total reserve of 25,000 Bitcoin. That crypto reserve continues to grow, including a recent addition of 469 BTC funded by proceeds from the sale of perpetual preferred stock under the ticker SATA.
Buying Equity Exposure, Not Holding Coins
ASSX’s operating model differs from typical crypto-linked instruments, particularly when compared to spot Bitcoin ETFs. Fund managers do not hold any physical Bitcoin in the portfolio’s assets under management. Holders of ASSX units are purely seeking 2x leveraged exposure to the price movements of Strive shares.
The daily return calculation structure introduces specific risks for long-term holders. The 200% leverage target is reset at the end of each trading day. Consequently, returns for investors holding positions for longer than a single day carry the potential for compounding drift, diverging from a simple mathematical 2x calculation of Strive’s underlying stock performance.
Shares Beat Analyst Consensus Targets
ASSX’s trading debut coincided with green momentum for the underlying company’s shares. Strive stock gained 6.4%, closing at $30.09 at the weekend closing bell. That closing price surpassed Wall Street analysts’ 12-month consensus price target, which had previously capped expectations at $29.40.
Reported by Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
