Companies holding Bitcoin in their treasury are spearheading a new income-oriented ETF, leveraging preferred securities as part of a strategy led by Strategy Inc. With Strive Inc. acting as the sub-adviser, this fund aims to provide yield and indirect exposure to Bitcoin through digital credit instruments.
Income-Focused ETF Strategy with No Direct Bitcoin Holdings
The increasing interest in income linked to corporate exposure from Bitcoin is paving the way for innovative ETF strategies. This includes a recent filing on March 30, 2026, with the U.S. Securities and Exchange Commission (SEC) for the proposed T-Strive Digital Credit ETF, which will trade under the ticker DGCR. The fund is designed with Strive Asset Management LLC serving as its sub-adviser and focuses on generating yield through securities associated with companies that maintain Bitcoin on their balance sheets.
In contrast to spot products, this fund invests in preferred securities issued by companies that hold significant amounts of $BTC or related financial instruments. These investments include perpetual preferred shares and other equity-linked securities that generate income from these firms, along with derivatives like total return swaps for gaining market exposure. According to the filing:
“This actively managed exchange-traded fund aims at providing current income while investing primarily in preferred securities issued by bitcoin treasury companies… engaging also in derivatives transactions.”
Strive Asset Management LLC operates as an SEC-registered investment adviser under Strive Inc., functioning as a sub-adviser for this initiative. The definition of bitcoin treasury companies within this context hinges upon specific thresholds related to asset exposure, revenue streams, regulatory classifications or mining activities.
The Preferred Securities Approach and Portfolio Concentration Risks
The operational structure of this fund encompasses various specialized entities working together seamlessly. This ETF is part of the ETF Opportunities Trust series; Tuttle Capital Management LLC acts as its primary investment adviser responsible for managing expenses and ensuring regulatory compliance. For trading facilitation and custody services, Commonwealth Fund Services Inc., serves as administrator while U.S Bank N.A acts as custodian.
The responsibilities regarding oversight are shared; one advisor manages all expenses associated with the fund while Strive Asset Management LLC directs portfolio strategy in its role as sub-adviser. Shares will be created in substantial units available on national exchanges where secondary market pricing may fluctuate based on supply-demand dynamics potentially diverging from net asset value depending on liquidity conditions.
“The fund falls under ‘non-diversified’ classification according to the Investment Company Act of 1940 (‘the 1940 Act’) allowing it to maintain a concentrated portfolio,” explains the filing further stating:
“Direct investments into bitcoin will not occur.”
This framework enables focused investment into a select number of issuers involved with bitcoin treasury strategies.
The anticipated T-Strive Digital Credit ETF intends primarily focusing on digital credit preferred securities provided by Strategy Inc., recognized as one of largest firms allocating corporate resources towards $BTC. “The expected concentration lies principally within digital credit preferred instruments such known variables such Series A Perpetual Stretch Preferred Stock (STRC) from Strategy Inc., alongside Series A Perpetual Preferred Stock (SATA) from Strive Inc.” according details outlined within filings documenting how these assets combined alongside derivatives aim at producing returns whilst retaining indirect engagement towards performance linked back towards bitcoin-related corporations.
Frequently Asked Questions ðŸ§
What’s at core behind DGCR’s investment approach?
It seeks returns via preferred stocks tied directly back toward firms maintaining bitcoins.
How does Strategy Incorporated fit into overall portfolio composition?
Its prominence stems due leading status among businesses possessing bitcoins.
Will investors have direct access toward owning bitcoins through funds?
No; instead they gain indirect benefits via corporate equities & derivative contracts.
Why should investors pay attention toward businesses holding bitcoins? They represent avenues enabling traditional financial vehicles yielding returns aligned closely around cryptocurrency performances.