REX Financial launches crypto equity income ETF targeting options trading
REX Financial launches crypto equity income ETF targeting options trading
REX Financial has introduced the REX Crypto Equity Premium Income ETF, a fund designed to generate income by writing options on a basket of cryptocurrency stocks.
Announced on September 18, the ETF employs a "covered call" strategy, holding stocks within the BITA Crypto Assets & Digital Payments Index, which includes companies focused on crypto mining, trading, custody, blockchain development, and digital payment solutions. Greg King, CEO of REX, stated, “Crypto is transforming financial ecosystems, [and] we’re applying our targeted covered call strategy to the sector’s most disruptive companies.” The BITA index, which the ETF tracks, has delivered over 80% returns in 2024, bolstered by a surge in crypto-related stocks following Donald Trump’s re-election and his pro-crypto stance.
A Growing Market for Crypto ETFs
The REX ETF adds to the growing list of crypto-focused investment products. This is the company’s third covered call ETF, following similar launches for Nasdaq and artificial intelligence stocks. REX also offers leveraged exposure to crypto-related assets through its T-REX 2X Long MSTR Daily Target ETF, which focuses on MicroStrategy, a significant Bitcoin holder. The launch comes as U.S. regulators adopt a more favorable approach to cryptocurrency oversight. With Trump’s pledge to turn the United States into the "world’s crypto capital," industry experts anticipate approvals for several pending cryptocurrency ETFs. Recent developments include Ethereum-focused ETFs, which could soon offer staking yields, further expanding the appeal of digital asset investments.The REX Crypto Equity Premium Income ETF highlights the increasing diversification of crypto investment options. By combining exposure to leading blockchain and digital payment companies with an income-generating strategy, the ETF could attract a wide range of investors. As the regulatory environment becomes more accommodating, the proliferation of crypto-related ETFs underscores the growing mainstream adoption of digital assets in the financial ecosystem. Read also: Bybit with 60M users seeks Hong Kong license
