New ETF Offers Crypto Exposure and Income Stream

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The world of digital assets continues to evolve, and with it, the investment vehicles designed to harness their potential. Enter the Nicholas Crypto Income ETF (BLOX), a freshly launched exchange-traded fund that blends exposure to both cryptocurrency and blockchain-related equities—while generating a steady income stream through strategic options trading.

Designed for investors seeking diversified access to the crypto ecosystem without directly managing digital wallets or exchanges, BLOX represents a modern fusion of traditional finance mechanics and next-generation asset classes. With its unique structure combining equity holdings, direct crypto exposure via ETFs, and an active options overlay, this fund stands out in a growing field of income-focused crypto products.

How BLOX Works: A Three-Part Investment Strategy

At its core, BLOX operates on a three-pillar framework:

  1. Equity Portfolio – Focused on public companies integral to the crypto economy
  2. Crypto Sleeve – Provides indirect but direct-like exposure to Bitcoin and Ether
  3. Options Overlay – Generates income by selling put spreads and writing covered calls

This hybrid model allows investors to benefit from long-term growth in both digital assets and supporting infrastructure firms, while also capturing premium income from options strategies—without sacrificing significant upside potential.

👉 Discover how diversified crypto-income strategies can enhance your portfolio returns

Equity Exposure: Investing in the Backbone of Crypto

Rather than betting solely on volatile cryptocurrencies, BLOX allocates a portion of its assets to publicly traded companies that play key roles in the blockchain and crypto ecosystem. These include:

Top holdings in the equity segment include well-known names such as Coinbase Global Inc. (COIN), Robinhood Markets Inc. (HOOD), MicroStrategy (MSTR), and Block Inc. (XYZ). These firms have already proven their relevance in the digital asset space, offering investors more stable entry points compared to individual cryptocurrencies.

By investing in these equities, BLOX gains exposure to revenue streams tied to transaction fees, mining rewards, platform usage, and corporate Bitcoin reserves—all while benefiting from the regulatory clarity and reporting standards of public markets.

Crypto Sleeve: Indirect Access to Bitcoin and Ether

While some investors prefer holding crypto directly, others seek regulated, custodied exposure. BLOX meets this demand by allocating part of its portfolio to U.S.-listed crypto ETFs and exchange-traded products (ETPs), including the iShares Ethereum Trust ETF (ETHA).

This approach ensures compliance with SEC regulations and eliminates the security risks associated with self-custody. Investors gain price exposure to Bitcoin and Ether—the two largest cryptocurrencies by market cap—through familiar brokerage accounts, without needing wallets, private keys, or exchanges.

Income Generation Through Smart Options Tactics

Where BLOX truly differentiates itself is in its active options strategy. The fund employs two primary tactics:

Unlike traditional covered call ETFs that cap upside gains by design, BLOX uses put spreads, which limit downside risk while preserving most of the appreciation potential. This means if Bitcoin surges in value, the fund still participates meaningfully in the rally—unlike funds that short call options and cap returns at a set strike price.

Additionally, distributions are paid weekly, offering more frequent income than typical monthly dividend funds—an appealing feature for yield-focused investors.

Why Now? The Timing Behind BLOX’s Launch

As crypto becomes increasingly institutionalized, demand for structured, income-generating products is rising. While early adopters focused purely on capital appreciation, today’s investors—including retirees and conservative allocators—are asking: Can I earn yield while maintaining exposure?

BLOX answers that question with a resounding yes.

According to David Nicholas, CEO of XFunds, “Investors are moving beyond singular bets on names like MicroStrategy or Coinbase. They want diversified exposure—with income.” That shift reflects broader maturation in the asset class.

Moreover, with macroeconomic uncertainty and elevated market valuations, many are looking to enhance returns through premium collection strategies. Option-selling funds have gained traction across asset classes, and crypto is no exception.

👉 Learn how innovative income strategies are reshaping crypto investing

A Proven Track Record in Income Innovation

Nicholas Wealth isn’t new to this game. Through its XFunds platform, the firm has built a reputation for creative income solutions:

BLOX extends this philosophy into the digital asset realm, applying disciplined risk management and consistent income mechanics to a high-growth, high-volatility sector.

With an expense ratio of 1.03%, BLOX sits within the typical range for actively managed, options-based ETFs—especially those involving complex strategies across multiple asset types.

Core Keywords for Search Visibility

To align with search intent and boost discoverability, the following keywords have been naturally integrated throughout this piece:

These terms reflect what investors are actively searching for: reliable ways to earn income from digital assets within regulated, accessible frameworks.

Frequently Asked Questions (FAQ)

Q: What is the BLOX ETF?
A: The Nicholas Crypto Income ETF (BLOX) is an actively managed exchange-traded fund that provides diversified exposure to both cryptocurrency-related equities and digital assets like Bitcoin and Ether, enhanced by an options strategy designed to generate weekly income.

Q: How does BLOX generate income?
A: BLOX sells put spreads on its crypto holdings and selectively writes covered calls or put spreads on its equity positions. This options overlay collects premiums that contribute to regular distributions.

Q: Does BLOX hold actual Bitcoin or Ether?
A: No direct holdings. Instead, it gains exposure through U.S.-listed crypto ETFs and ETPs such as the iShares Ethereum Trust (ETHA), ensuring regulatory compliance and custodial security.

Q: How often are dividends paid?
A: BLOX offers weekly distributions, making it one of the few crypto-related funds to provide such frequent payouts—ideal for investors seeking regular income flow.

Q: Is BLOX suitable for conservative investors?
A: While it includes exposure to volatile assets like crypto, BLOX employs risk-defined options strategies (like put spreads) and diversification across equities to moderate risk. However, it's best suited for investors comfortable with moderate volatility seeking yield enhancement.

Q: What is the expense ratio of BLOX?
A: The fund has an expense ratio of 1.03%, which is competitive given its active management, multi-asset structure, and sophisticated options trading approach.

👉 See how next-gen ETFs are combining crypto growth with income generation

The launch of BLOX signals a new phase in crypto investing—one where growth and income aren’t mutually exclusive. For investors tired of choosing between speculation and stability, BLOX offers a balanced path forward: diversified exposure, structured risk management, and consistent yield—all wrapped in a transparent, exchange-traded vehicle.

As the digital asset landscape matures, expect more innovations like BLOX to emerge—bridging Wall Street mechanics with blockchain opportunities.