Harnessing crypto equity volatility to generate income through a covered call strategy.
Distribution Rate* : 21.66%
Investment Manager
Source: Bloomberg / HANetf. Data As of 08.10.2026.*PLEASE NOTE: The Distribution Rate is the annual rate an investor would receive if the most recently declared distribution, which includes option income, remained the same going forward. The Distribution Rate is calculated by multiplying an ETF’s Distribution per Share by twelve (12), and dividing the resulting amount by the ETF’s most recent NAV. The Distribution Rate represents a single distribution from the ETF and does not represent its total return.
Balanced exposure to the crypto ecosystem
Gain diversified access to 25 leading U.S.-listed crypto-related companies, including those involved in mining, trading, custody, and blockchain infrastructure, providing comprehensive exposure to the digital asset landscape.
Harvest elevated volatility premiums
By writing calls on individual names, the fund aims to take advantage of higher implied volatility than traditional index-based strategies typically offer.
Aims to preserve upside participation
By writing calls on only half the portfolio and setting strike prices up to 10% out-of-the-money, the strategy offers greater potential to benefit from any tech rallies and recoveries after market pullbacks.
The BITA Crypto Assets and Digital Payments Constrained Index tracks 25 leading U.S.-listed companies with significant involvement in cryptocurrency and digital payment ecosystems. Eligible companies must meet liquidity requirements and derive meaningful revenue from activities such as crypto mining, digital asset exchanges, blockchain development, custody services, or payment technologies.
Constituents are classified by their primary business focus and selected through a transparent, rules-based process. The Index applies UCITS-compliant weighting caps, limiting any single stock to 8% and capping others at 4.5%, with a 35% limit on the aggregate of higher-weighted constituents.
The Index is rebalanced monthly and reconstituted quarterly to stay aligned with market developments.
REX Crypto Equity Income & Growth UCITS ETF (CEGI) offers exposure to 25 leading U.S.- listed crypto related stocks, while generating income by writing covered calls on ~50% of the portfolio.
This balanced strategy targets attractive monthly distributions and meaningful upside, aiming to enhance yield through volatility without materially capping growth.
The Crypto Equity Income & Growth ETF is actively managed by the expert team at Rex Advisers, LLC.
Key Risks
When you invest in ETFs your capital is fully at risk and may not get back the amount originally invested. Exchange rates can have a positive or negative effect on returns. The value of equities and equity-related securities can be affected by daily stock and currency market movements.
There is currently insufficient data to display the performance history.
No. of holdings: 25
Covered call ETFs hold a portfolio of stocks, or other asset classes, either actively selected or from an index, and sell call options on those holdings or the index itself. The option premiums are then distributed to investors as income, typically on a monthly basis.
These ETFs aim to provide enhanced income, especially in flat or moderately bullish markets, although they may underperform in strongly rising markets as potential upside is capped by the sold calls. Some covered call ETFs mitigate this by writing calls on only a portion of the ETF’s holdings, with the remaining stocks being used to capture growth.
Covered call ETFs generally pay distributions on a monthly basis, but can be other time frames including weekly or daily, funded from the option premiums collected from writing calls – or dividends from the underlying equities.
The distribution per share is the amount of income paid out by the ETF for each share owned, typically quoted monthly or quarterly.
For example, if an ETF pays $0.50 per share in a given month, and you own 1,000 shares, the calculation would be as follows:
$0.50 ×1000=$500
So, the distribution received by the investor would be $500.
The annual distribution rate is calculated by taking the most recently declared distribution per share, and calculating this by 12 and then dividing the resulting amount by the ETF’s most recent NAV.
For example, if the most recent distribution per share was $1.00, and the most recent NAV was $50.00, the calculation would be as follows:
($1.00 ×12)/$50.00 = 0.24 = 24%
The resulting figure (24%) reflects the yield an investor might expect to receive on an annual basis if current distribution levels continue.
It is important to note that the annual distribution rate is a projected value based on a single distribution and the most recent NAV. This is in no way a guarantee that investors will receive that distribution rate annually, and the actual annual distribution rate may differ from the projected value.
Remember that past performance is not indicative of future performance and when you invest in ETFs your capital is at risk.
The announcement date is the day the ETF provider declares the amount, and schedule, of the upcoming distribution. It signals to the market how much will be paid and when.
The ex-date (or ex-dividend date) is the date by which you must own the ETF before, to be eligible for the next distribution.
This means that if investors buy shares on or after the ex-date, they will not receive the upcoming distribution.
The record date is the date that the ETF provider determines who is eligible to receive the distribution. Only shareholders listed as of the record date will receive the payout.
The payment date is when the distribution is actually paid out to investors – either by direct deposit or credited to their brokerage accounts.
Read our extensive list of FAQs on active management by clicking the button below.
Crypto-related equity exposure means investing in listed companies whose businesses are linked to digital assets, blockchain infrastructure, crypto exchanges, miners, payments or related technology services. This is different from holding cryptocurrencies directly. The exposure is through company shares, so performance depends on equity-market behaviour, company fundamentals and prevailing sentiment toward the digital asset ecosystem.
Investing in crypto-related companies gives exposure to businesses connected to the crypto ecosystem, rather than direct ownership of tokens such as bitcoin or ether. These companies may be influenced by crypto prices, but they also face operating costs, competition, regulation, management decisions and stock-market valuation changes. Their shares may rise or fall for reasons that are not directly linked to crypto prices. As a result, their shares may rise or fall for reasons that have little or no direct relationship to crypto prices.
A covered call strategy involves holding shares while selling call options on some of those shares or related exposures. The option premium can create income, but it may also limit some upside if the underlying shares rise above the option strike price. This means the strategy can behave differently from a simple equity portfolio, particularly in strongly rising markets.
Covered calls are sometimes used with volatile equities because option premiums tend to be higher when expected volatility is elevated. Crypto-related equities can be volatile, which may increase the income available from selling options. However, higher volatility also increases the likelihood of options being exercised, potentially limiting gains during sharp market rallies, and increases the risk of sharp drawdowns. The income generated from options does not remove the underlying equity risk.
The main risks include equity-market volatility, crypto-sector sentiment shifts, regulatory change and concentration risk. The covered call structure introduces additional considerations: option strategy risk and the potential for capped upside on the portion of the portfolio with call options written against it. Crypto-related companies can be highly sensitive to digital asset prices, funding conditions and changes in regulation. Covered call income may help offset some volatility, but it does not protect investors from significant losses.
A covered call overlay can add option premium income but may reduce participation in strong upside moves. If the underlying shares rise sharply, gains above the option strike may be limited on the covered portion. In flat or moderately rising markets, option premiums may support total return. In falling markets, the premium may provide only partial offset against equity losses.
The percentage of the portfolio covered by calls matters because it affects the balance between income generation and upside participation. A higher covered-call level may generate more premium but may cap more of the portfolio’s potential gains. A lower covered-call level may allow more upside participation but generate less option income. Understanding this trade-off is central to assessing whether the strategy is appropriate for a given investment objective, particularly for investors who prioritise growth over income.
Disclaimer: These FAQs have been generated with the assistance of AI and may contain errors or omissions. They are provided for general information only and do not constitute investment advice, a recommendation, or an invitation to buy or sell any investment.
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About Partner
REX is an innovative ETP provider focused on delivering alternative and thematic strategies. The firm has recently expanded into option-based income solutions and a crypto equity convertible bond ETF, reflecting a broader commitment to income generation and differentiated exposures. REX is also known for creating the leveraged suites of MicroSectors ETNs and the T-REX single stock ETFs. Select strategies are sub-advised by Vident Asset Management, a firm recognized for its deep expertise in options-based portfolio management.
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