A new player in the crypto investment arena is turning heads as it gains momentum. The Nicholas Crypto Income ETF, known by its ticker BLOX, has captured the attention of investors eager for diversified exposure to digital assets paired with options income. Launched on June 17 on the New York Stock Exchange, BLOX has swiftly attracted considerable interest, securing a net inflow of approximately $4.52 million, based on data from VettaFi. This surge in investor appetite suggests a shift towards more sophisticated, multi-dimensional financial products in the digital asset space. This trend is reminiscent of the recent Bitcoin ETFs Notch 13 Consecutive Days of Inflow, highlighting a broader movement towards crypto ETFs.
A Trio of Investment Strategies
The BLOX ETF, a brainchild of Nicholas Wealth in collaboration with Tidal Investments LLC, is far from your typical crypto fund. It employs a three-pronged approach that not only targets the volatile digital asset market but also aims to enhance returns through strategic options plays. According to David Nicholas, CEO of XFUNDs, “The options income space is almost becoming its own asset class,” which might explain why yield-seeking retail investors are eagerly jumping on board.
This fund is structured with an equity sleeve, a digital asset sleeve, and an options sleeve. The equity sleeve focuses on companies entrenched in the crypto sphere, like Coinbase and Nvidia, ensuring a foothold in traditional equities that are still tethered to the digital currency ecosystem. The digital asset sleeve offers exposure to select bitcoin and ether ETFs, with the potential to include other regulated digital assets as they emerge.
Nicholas explains the allure of this combination succinctly, “We own about 11 businesses, and we have high conviction that they will benefit from Bitcoin or Ether appreciation, but they aren’t crypto assets themselves.” This dual exposure to traditional equities and digital assets is what sets BLOX apart from more one-dimensional crypto funds.
Riding the Waves of Market Movements
In the world of high finance, flexibility and adaptability are key, and BLOX seems to have these traits in spades. The options sleeve within the fund writes call and put spreads on its crypto investments, capitalizing on market dynamics to generate additional income. The strategy of writing put spreads—akin to selling insurance against price fluctuations—allows the fund to collect premiums and bolster its income streams.
For instance, during the final week of June, shares of Coinbase—a top holding in the ETF—soared over 14%. Thanks to its strategic structure, BLOX was able to capture the uptrend while simultaneously benefiting from options income. The same scenario played out with Core Scientific, which experienced a 15% rise. This mirrors the strong institutional support seen in the $588 Million Bitcoin ETF Inflows, underscoring the growing confidence in crypto investments.
Nicholas is enthusiastic about this aspect, stating, “That’s what’s great about put spreads—there’s no cap. A put spread is a long, bullish options position.” This approach is not only popular in the equity markets but is gaining traction among crypto enthusiasts who have been employing similar tactics on platforms like Deribit.
Looking to the Future
As the crypto landscape evolves, so too does BLOX’s strategy. The ETF is open to incorporating altcoins such as Solana’s SOL and XRP, contingent on regulatory approval. “Once the SEC approves others—like Solana, which has a pending ETF—we can file an amendment and add them to our fund,” Nicholas mentioned, hinting at the fund’s potential adaptability and future growth.
The introduction of BLOX marks a significant moment in the crypto investment sector, presenting a novel way to engage with the market. Yet, as with all investments, questions linger. Can BLOX maintain its momentum and continue to appeal to investors amid the unpredictable tides of the crypto seas? Only time will tell. But for now, BLOX seems poised to ride the wave of change, offering a unique blend of digital asset exposure and options income that investors appear to be eagerly embracing.
Source
This article is based on: Crypto ETF BLOX, Which Offers Digital Asset Exposure and Options Income, Gains Steam
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
