Diversification remains central to the investor strategy.
Leaning on it, has introduced REX shares the REX Growth & Income Universe ETF (GIF). It combines its nine ETFs into a single fund, offering “diversified” exposure that includes crypto-linked assets.
In other words, unlike traditional Bitcoin [BTC] or ether [ETH] ETFs that track a single asset class, GIF spreads risk across multiple stocks across the technology, retail, healthcare and crypto-related sectors, making it a structurally broader investment approach.
Source: Businesswire
Looking at the details, three of the nine underlying ETFs are directly crypto-linked: MSII (Strategy, known for its BTC holdings), COII (Coinbase, a crypto exchange), and HOII (Robinhood, which offers crypto trading).
From a structure perspective, each ETF targets 1.25x exposure to its stocks and uses covered calls on about half of its investments to generate weekly income. While the rest remains invested to benefit if the share price rises.
In practical terms, REX Shares seeks to combine stable income with sustainable stock upside potential, while keeping diversification intact. However, as AMBCrypto notes, this also raises a structural question.
Recent cycles have seen a decline in halving yields due to heavier ETF flows. In such an environment, does REX Shares’ approach reflect a shift towards more risk-managed exposure to cryptocurrencies, or does it threaten to further limit the upside?
REX Shares’ revenue strategy meets post-halving reality
The difference between traditional ETFs and REX lies in the structure.
Traditional ETFs typically track an index (such as Bitcoin), maintain a one-time exposure, and rely on price appreciation for returns. In contrast, REX’s model includes layers of leverage and covered calls to generate weekly income.
Why does that matter? As AMBCrypto notes, this is where the shift becomes apparent. REX stock is trending toward engineered yield over pure crypto beta, reflecting the cooling momentum seen in traditional ETFs.
Source: TradingView (IBIT/USD)
Take BlackRock’s iShares Bitcoin Trust (IBIT) as an example.
In risky markets, IBIT sees significant outflows, strengthen the downward pressure. After two consecutive negative quarters, the fund is down almost 50%, underscoring the volatility associated with single asset exposure.
The result? Long-term outflows limit BTC accumulation. REX stock, on the other hand, focuses on a mix of diversified exposure and income generation, rather than relying solely on price movements. This makes it better aligned with current market realities after the halving.
Final summary
- REX Shares’ GIF combines nine ETFs, using modest leverage and covered calls to generate weekly income.
- Unlike pure crypto ETFs, REX’s structure emphasizes diversification, making it more aligned with the current post-halving market environment.