Key Highlights
- Strive, Inc. filed for the T-Strive Digital Credit ETF (DGCR) to invest in preferred shares of companies holding Bitcoin.
- The ETF will focus on Strategy Inc. (STRC) and Strive (SATA) preferred stocks and may use leverage and derivatives.
- The SEC filing is not yet effective, so the ETF cannot currently be sold or offered to investors.
Strive, Inc., a Bitcoin treasury company, has filed for a new exchange-traded fund (ETF) called the T-Strive Digital Credit ETF (ticker: DGCR) with the U.S. Securities and Exchange Commission (SEC) on March 30.
According to the official filing, the fund is designed to give investors a way to earn income by investing in companies that hold digital assets like Bitcoin.
Focus on digital asset preferred shares
According to the filing, the ETF will invest mainly in “Digital Credit Preferred Securities,” which are preferred shares issued by companies that keep Bitcoin and other digital assets as part of their financial reserves.
The fund will mainly invest in Strategy Inc. Variable Rate Series A Perpetual Preferred Stock (STRC) and Strive, Inc. Variable Rate Series A Perpetual Preferred Stock (SATA), which are both listed on the Nasdaq.
In addition, the ETF may use derivatives and leverage, meaning it can borrow money to increase its investment exposure and boost income, while following regulatory and risk management limits.
Strive Asset Management, a wholly owned subsidiary of Strive, Inc., will act as sub-adviser for the ETF. The company will handle the digital asset-related aspects of the fund, while the overall structure follows standard ETF registration procedures under U.S. regulations.
The registration statement has been filed but is not yet effective, meaning the ETF cannot currently be offered or sold to investors until the SEC completes its review process.
What it means
The development is part of the broader trend of financial firms creating investment products linked to digital asset treasury strategies. T-Strive itself is a joint venture between Tuttle Capital and Strive Asset Management, combining experience from traditional finance and digital asset management.
In recent years, some companies have started holding cryptocurrencies like Bitcoin as part of their corporate treasury. This approach, known as a digital asset treasury strategy, allows firms to gain exposure to the potential price movements of digital assets.
At the same time, investor demand for regulated ways to access crypto markets has increased. While some ETFs hold cryptocurrencies directly, others, like the proposed T-Strive Digital Credit ETF, invest in companies connected to digital assets, offering an indirect way for investors to participate in the market.
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