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

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 near a $100 par value, with variable dividends calibrated to keep prices hovering around that level.

At launch, SATA is delivering an annualized yield of roughly 13% with daily dividend payments, a feature it has maintained since June 16, 2026. STRC offers returns in the 12% to 13.16% range, paid out on a semi-monthly basis.

Two securities, two philosophies

SATA has leaned into a conservative cash reserve strategy, which has enabled its streak of consistent daily payouts. STRC, on the other hand, comes with a larger operational base and the institutional heft of Strategy Inc., which has become one of the most recognized names in the corporate Bitcoin treasury movement. Its slightly wider yield range, fluctuating between 12% and 13.16%, reflects the different risk and return profile that comes with a bigger, more complex operation.

Why preferred securities from Bitcoin treasuries

Preferred securities sit in a particular sweet spot. They rank above common equity in the capital structure, meaning holders get paid before shareholders if things go sideways. But they also carry higher yields than senior debt, compensating investors for the additional risk relative to bonds.

DCAP is the first US ETF to package this idea into a single, exchange-traded product.

What this means for the market

The risk side of the ledger deserves attention too. These preferred securities are ultimately backed by companies whose balance sheets are heavily exposed to Bitcoin’s price. A sustained Bitcoin downturn wouldn’t just hit the common equity of these firms. It could pressure their ability to maintain the dividend payments that make their preferred securities attractive in the first place. The conservative cash reserve strategy that SATA has emphasized is one buffer against that scenario, but no reserve policy eliminates the risk entirely.