According to a statement made on September 18, the company has launched a new exchange-traded fund (ETF) that aims to generate income by writing options against cryptocurrency stocks.

REX Crypto Equity Premium Income ETF offers investors interested in cryptocurrencies the opportunity to generate income by using the “covered call” strategy. The ETF holds a basket of shares of 25 crypto companies and generates income from option premiums by writing bare options against these stocks.

REX Financial stated that the stocks included in the ETF consist of companies operating in areas such as crypto mining, trading, custody, blockchain technology development and digital payment solutions.

The main purpose of the ETF is to provide income to investors by using shares of the largest and most disruptive crypto companies in this industry. “Crypto is transforming financial ecosystems and we are executing our targeted covered call strategy on the most innovative companies in the industry,” Greg King, REX CEO, said in a statement.

The cryptocurrency market has undergone a major transformation in recent years, and there has been growth in the digital payment solutions sector, especially with blockchain technology. In addition to cryptocurrencies such as Bitcoin and Ethereum, blockchain-based companies have also grown by receiving significant investments.

This creates new opportunities for investors interested in crypto. While REX Crypto Equity Premium Income ETF offers investors the opportunity to earn income in this growing sector, it also tries to minimize risk thanks to option strategies.

REX’s new ETF follows a similar strategy as other previously launched ETFs related to crypto stocks and options. The company had previously launched covered call ETFs for Nasdaq and AI stocks.

These ETFs offer investors the opportunity to combine income from stocks and options. Additionally, REX’s previously launched T-REX 2X Long MSTR Daily Target ETF (MSTU) provides investors with 2x leveraged exposure to MicroStrategy, a company that buys Bitcoin.

Options are contracts that give the right to buy or sell an asset at a certain price. The “covered call” strategy involves agreeing to sell an asset at a certain price, receiving a premium and foregoing potential gains.

This strategy can be an effective way to limit risks while providing regular income for investors. In the US, cryptocurrency market regulators began to embrace cryptocurrencies more after Trump won the presidential election. This development has led to the emergence of more crypto ETFs.

Currently, more than a dozen proposed cryptocurrency ETFs are awaiting approval from US regulators. Industry analysts believe that following ETFs containing BTC and Ether, crypto index ETFs will be a major focus for issuers.

On December 2, Bernstein Research stated that US ETH ETFs may soon offer staking income. This could create new opportunities for crypto investors.