A newly launched U.S. crypto-focused ETF is gaining strong investor interest by offering more than just spot Bitcoin exposure. The Nicholas Crypto Income ETF (BLOX), launched on June 17, has already attracted $4.52 million in net inflows, with total assets under management (AUM) reaching approximately $4.9 million.
What Is the BLOX ETF and Why It Stands Out
BLOX is actively managed and provides diversified exposure to the digital asset ecosystem, while also implementing options income strategies. It is part of the XFUNDS by Nicholas Wealth, launched in partnership with Tidal Investments LLC.
Unlike traditional ETFs that track a single crypto asset, BLOX is structured with three distinct investment sleeves:
- Equity Sleeve: Targets public companies with significant crypto exposure or holdings.
- Digital Asset Sleeve: Invests in spot Bitcoin and Ether ETFs and may expand to other regulated crypto vehicles.
- Options Income Sleeve: Utilizes options strategies like call/put spreads and covered calls to generate additional yield.
“The options income space is almost becoming its own asset class,” said David Nicholas, CEO of XFUNDs.
Top Holdings: More Than Just Bitcoin Exposure
BLOX includes 11 high-conviction holdings in its equity sleeve, focusing on companies positioned to benefit from the broader adoption of Bitcoin and Ethereum. These include:
- Coinbase (COIN)
- Nvidia (NVDA)
- MARA
- Core Scientific (CORZ)
- BlackRock’s spot Ethereum ETF
This balanced mix allows investors to benefit from crypto asset price appreciation while also gaining exposure to public companies with earnings potential, reducing reliance on crypto market volatility alone.
Generating Options Income in a Crypto-Backed Portfolio
What differentiates BLOX further is its options income strategy. The fund actively writes call and put spreads on its crypto and equity holdings. This strategy allows the ETF to generate consistent premiums (income), even during sideways or mildly volatile market conditions.
Writing options, especially covered calls and put spreads, allows BLOX to mitigate downside risk and enhance returns, a unique value proposition in the crypto ETF space.
Retail Demand Grows for Yield in Crypto
The strong early inflows suggest that yield-seeking retail investors are gravitating toward multi-dimensional crypto products like BLOX.
As more investors look for regulated, income-generating crypto exposure, funds like BLOX could signal a broader trend away from simple spot ETFs toward diversified, active strategies.
With $4.9 million in AUM and a multi-sleeve structure, BLOX may mark the next evolution in crypto investment vehicles—especially for those balancing growth and income goals.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.