21Shares has launched a new exchange-traded note called the 'Strategy Yield ETN' aimed at UK investors. The product provides exposure to preferred shares (STRC) of Strategy, a company that holds one of the largest Bitcoin treasuries globally. The ETN began trading this week on the London Stock Exchange, giving retail and institutional investors a way to tap into Strategy's dividend-paying preferred stock without buying the underlying shares directly.
What the ETN holds
The Strategy Yield ETN tracks the performance of Strategy's Series A Perpetual Preferred Stock (ticker: STRC). These preferred shares pay a fixed dividend and rank senior to common equity in the capital structure. Strategy, formerly known as MicroStrategy, is widely recognized as a top Bitcoin treasury firm — it holds roughly 200,000 BTC on its balance sheet as of this month.
Why preferred shares now
Strategy's preferred shares offer a yield that common stock doesn't — a feature that appeals to income-focused investors who still want Bitcoin treasury exposure. 21Shares structured the ETN as a debt instrument, meaning it doesn't carry the same tax treatment as direct equity in the UK. The launch comes as European demand for crypto-linked structured products continues to grow, particularly among wealth managers looking for regulated wrappers.
The UK angle
UK investors have limited options for direct Bitcoin exposure through exchange-traded products. The Financial Conduct Authority has banned crypto ETNs for retail investors since 2021, but this product sits in a grey area: it tracks a preferred share of a corporate entity, not the crypto asset itself. 21Shares is betting the distinction will pass muster with compliance teams at UK brokers. The ETN is listed in sterling and trades during London hours.
This isn’t 21Shares’ first rodeo in London — the firm already runs a suite of physically backed crypto ETNs on the LSE. But the Strategy Yield ETN is its first product tied to a corporate Bitcoin play. Whether it attracts meaningful volume will depend on how advisors and platforms classify it.
