YEREVAN (CoinChapter.com) — REX Financial announced a new exchange-traded fund (ETF) focused on generating income through a covered call strategy. Named the REX Crypto Equity Premium Income ETF, it includes 25 cryptocurrency stocks and earns premiums by writing out-of-the-money options. This strategy provides regular income but limits profit potential from price increases.
The ETF tracks the BITA Crypto Assets & Digital Payments Index, which features companies operating in crypto mining, trading, custody services, blockchain technology, and digital payments. The index has gained 80% in 2023, reflecting increased interest in cryptocurrency-linked equities.
REX Shares Announces CEPI ETF. Source: Business Wire
In a statement, Greg King, CEO of REX Financial, said,
“Crypto is transforming financial ecosystems, [and] we’re applying our targeted covered call strategy to the sector’s most disruptive companies.”
BITA Index Supports the ETF’s Core Holdings
The BITA Crypto Assets & Digital Payments Index serves as the backbone of the new ETF. It includes leading firms involved in cryptocurrency and blockchain development. Companies in this index also represent critical aspects of the digital finance ecosystem, from mining and payments to custody solutions.
BCADPS Index Performance Chart. Source: BCADPS/BITA
Additionally, the index has seen significant gains this year, particularly after the Nov. 5 U.S. presidential election, which boosted investor confidence in cryptocurrency stocks. Its performance also reflects growing interest in assets tied to blockchain and digital payments.
REX’s History with Income-Focused ETFs
This ETF is the third covered call strategy introduced by REX Financial. Previous ETFs targeted Nasdaq stocks and artificial intelligence companies, employing a similar income-generating approach.
In addition to this new product, REX has launched other crypto-related ETFs, such as the T-REX 2X Long MSTR Daily Target ETF (MSTU). This ETF offers leveraged exposure to MicroStrategy, a major Bitcoin-focused company. The firm’s track record highlights its focus on creating niche investment opportunities in technology and cryptocurrency sectors.
Broader Interest in Crypto ETFs Grows
Cryptocurrency ETFs continue to gain traction as regulatory environments evolve. Analysts highlight the emergence of crypto index ETFs, with significant developments in 2023, including ETFs tracking Bitcoin (BTC) and Ethereum (ETH).
Recently, interest has shifted toward Ethereum staking yields, which could be incorporated into future ETF products. Notably, on Dec. 2, a report by Bernstein Research suggested that U.S. Ethereum ETFs featuring staking rewards may soon be launched.
Ethereum vs Bitcoin Insights. Source: Bernstein Research
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