Donald Trump

Asset manager REX Financial has launched an exchange-traded fund (ETF) designed to earn income from writing options against cryptocurrency stocks, according to a Sept. 18 announcement.&nbsp;
The REX Crypto Equity Premium Income ETF executes a “covered call” strategy, holding a basket of 25 crypto stocks and writing out-of-the-money options against them to earn income from the options premiums.
The ETF holds the stocks in the BITA Crypto Assets &amp; Digital Payments Index, including “those that operate in crypto mining, trading, custody, blockchain technology development, and the creation of digital payment solutions,” REX <a data-ct-non-breakable="null" href="https://www.businesswire.com/news/home/20241204941755/en/REX-Shares-Unveils-Latest-Covered-Call-ETF-Designed-to-Enhance-Exposure-to-Crypto-Leaders" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://www.businesswire.com/news/home/20241204941755/en/REX-Shares-Unveils-Latest-Covered-Call-ETF-Designed-to-Enhance-Exposure-to-Crypto-Leaders">said</a>.
“Crypto is transforming financial ecosystems, [and] we’re applying our targeted covered call strategy to the sector’s most disruptive companies,” Greg King, REX’s CEO, said in a statement.
<figure>
 <img alt="REX launches crypto stock income ETF" src="https://s3.cointelegraph.com/uploads/2024-12/01939207-6659-7b26-b20a-a1c01e68ac54" title="">
 <figcaption style="text-align: center;">
 BITA Crypto Assets &amp; Digital Payments Index performance. Source: <a data-ct-non-breakable="null" href="https://www.bitadata.com/index/BCADPS" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://www.bitadata.com/index/BCADPS">BITA</a>
 </figcaption>
</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/rex-shares-tuttle-launch-2x-long-short-microstrategy-etfs" rel="" target="_self" text="null" title="https://cointelegraph.com/news/rex-shares-tuttle-launch-2x-long-short-microstrategy-etfs">REX Shares, Tuttle launch 2X long, short MicroStrategy ETFs</a>
The BITA index has returned more than 80% this year, partly because crypto-related stocks soared after Donald Trump won the Nov. 5 United States presidential election.
This is REX’s third covered call ETF. The asset manager launched similar ETFs for Nasdaq and artificial intelligence stocks.
It has previously launched other crypto-related ETFs, including T-REX 2X Long MSTR Daily Target ETF (MSTU), which aims to offer 2x leveraged exposure to famed Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) buyer MicroStrategy.
Options are contracts granting the right to buy or sell — “call” or “put,” in trader parlance — an underlying asset at a certain price.
Covered calls earn income by agreeing to sell an asset at a certain price, earning an upfront premium but forfeiting potential upside.
<h3 id="proliferating-crypto-etfs">Proliferating crypto ETFs</h3>
US regulators have softened their stance on crypto oversight after Trump — who has promised to turn the US into the “world’s crypto capital” — prevailed in the US elections.
Now, more than a half dozen proposed cryptocurrency ETFs are anticipating a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/these-crypto-etfs-call-options-us-elections" rel="" target="_self" text="null" title="https://cointelegraph.com/news/these-crypto-etfs-call-options-us-elections">green light from regulators</a>.
Industry analysts say crypto index ETFs are the next big focus for issuers after ETFs holding BTC and Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="null" target="null" text="null" title="https://cointelegraph.com/ethereum-price">ETH</a>) listed in January and July, respectively.
On Dec. 2, Bernstein Research said US ETH ETFs may <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/us-ether-etfs-staking-may-be-imminent-bernstein" rel="" target="_self" text="null" title="https://cointelegraph.com/news/us-ether-etfs-staking-may-be-imminent-bernstein">soon feature staking yield</a>.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-dominance-crypto-predictions-bull-run-benjamin-cowen-hall-of-flame/" rel="null" target="null" text="null" title="null">Bitcoin dominance will fall in 2025: Benjamin Cowen, X Hall of Flame</a>

REX launches crypto stock income ETF

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