DCAP ETF launches with 50/50 split between Strategy and Strive preferred securities

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A new ETF just carved out a niche that didn’t exist a year ago. The T-Strive Digital Credit Preferred Income ETF, trading under the ticker DCAP, began trading on the Cboe BZX Exchange with a straightforward pitch: collect fat dividend checks from Bitcoin treasury companies without ever touching Bitcoin itself. The fund splits its initial portfolio roughly 50/50 between two preferred securities: STRC, issued by Strategy Inc., and SATA, issued by Strive Inc. Both instruments are tied to companies that hold significant Bitcoin on their balance sheets, but the ETF’s investors get exposure through fixed-income-style instruments rather than the wild price swings of the underlying asset. How the fund actually works DCAP is actively managed by Tuttle Capital Management, with Strive Asset Management serving as sub-adviser in a limited capacity. The fund’s mandate requires that at least 80% of its net assets be parked in what it calls “Digital Credit Preferred Securities.” That term has a specific definition here: preferred securities from companies that hold or derive income from at least 5% in Bitcoin or Bitcoin-linked instruments. The two underlying securities were structured to trade nea...

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