TL;DR:
- Strive and Tuttle filed with the SEC the T-Strive Digital Credit ETF, which would invest in preferred shares of companies with BTC reserves.
- The fund would target Strategy’s STRC instrument, with an 11.5% monthly dividend, and SATA, which pays 12.75% after this month’s increase.
- The ETF would trade under the ticker DGCR on Cboe, would use swaps and leverage, and would not invest directly in Bitcoin according to the prospectus.
Strive and Tuttle Capital Management filed with the U.S. Securities and Exchange Commission (SEC) a request to launch the T-Strive Digital Credit ETF, an exchange-traded fund designed to invest in preferred shares issued by companies with bitcoin treasuries. The product aims to capture the income yield generated by these types of instruments.
The fund would specifically target two products: the STRC from Strategy, the largest corporate bitcoin treasury in the world, and the SATA from Strive, a company that recently entered the top 10 of corporate bitcoin treasuries by volume. Both are perpetual preferred shares with variable rates, designed to fund bitcoin purchases through attractive monthly dividend payments and a relatively stable price structure around $100.
Strive Expands its Product Ecosystem
Strategy’s STRC currently pays an 11.5% monthly dividend, while SATA was adjusted to 12.75% at the beginning of March. The latter was launched through a $160 million IPO last November, oversubscribed, and in January the company announced a secondary offering for an additional $150 million. The firm currently holds approximately 13,310.9 BTC, acquired through various mechanisms: PIPE, the acquisition of Semler Scientific, and capital markets operations tied to SATA itself.
If the ETF is approved, it would trade on the Cboe market under the symbol DGCR. According to the prospectus, the fund would not invest directly in bitcoin, but would use swaps and leverage to deepen its exposure to the income flows of STRC and SATA. The management fee amount was not detailed in the initial filing.
Matthew Tuttle, of Tuttle Capital Management, will serve as lead portfolio manager, while Chris Nicholson, Vice President of Strive, will act as sub-advisor.
