BLOX ETF, Offering Investors Both Crypto Exposure and Options Income, Attracts Increasing Attention

A recently launched crypto ETF in the United States is quickly gaining popularity, reflecting a growing interest among investors for diversified digital asset exposure beyond single-token funds.

The Nicholas Crypto Income ETF, trading under the ticker BLOX, debuted on June 17 and combines digital asset exposure with income from options strategies. Since launching, it has attracted about $4.52 million in net inflows, bringing its total assets under management to nearly $4.9 million, according to data from VettaFi and the fund’s own disclosures.

“The options income sector is evolving into its own asset class,” said David Nicholas, CEO of XFUNDs, in comments to CoinDesk. He noted that BLOX is catching the attention of retail investors looking to pair crypto exposure with opportunities for income.

A Three-Part Investment Approach

Created in collaboration with Tidal Investments LLC, BLOX follows a diversified three-sleeve strategy:

• Equities: BLOX invests in publicly listed companies involved in crypto-related activities, including blockchain technology developers and businesses holding digital assets on their balance sheets.
• Crypto ETFs: The fund allocates resources to bitcoin and ether ETFs and maintains flexibility to diversify into other digital assets as more regulated products come to market. As of Thursday, its significant holdings included BlackRock’s spot Ethereum ETF, Coinbase, Nvidia, Marathon Digital (MARA), and Core Scientific, helping ensure its performance isn’t solely tied to bitcoin price movements.
• Options: BLOX enhances income through options strategies, selling call and put spreads connected to its crypto ETF positions and writing covered calls or put spreads on its equity holdings.

“We own about 11 companies that we believe will benefit from the rise in bitcoin or ether, but they aren’t crypto tokens themselves,” Nicholas explained. “This setup offers investors both direct crypto exposure and the potential for returns from companies with real business fundamentals. That’s what makes BLOX distinctive.”

Generating Extra Income Through Options

Options writing is central to BLOX’s income strategy. Selling options enables the fund to earn premiums, functioning much like collecting fees for taking on market risk.

By selling put spreads, BLOX can generate additional income if the underlying assets increase in value. The ETF also trades options linked to spot crypto ETFs, such as BlackRock’s spot bitcoin ETF (IBIT).

For example, Coinbase—a significant equity holding in BLOX—saw its shares climb over 14% in the final week of June. BLOX benefited from both the price surge and the income generated through its options positions. Another holding, Core Scientific, rose about 15% recently.

“The appeal of put spreads is there’s no limit on upside gains. It’s essentially a bullish trade,” Nicholas said. BLOX distributes income from options premiums and dividends from its equities to investors on a weekly basis.

Though crypto investors have long used strategies like put spreads and high-strike calls on offshore exchanges such as Deribit, these income-focused tactics are gaining popularity in ETFs and the wider equities market.

Potential for Broader Crypto Coverage

Looking ahead, BLOX may broaden its crypto exposure if regulatory conditions permit.

“If the SEC gives the green light to other products—like a Solana ETF—we’d simply amend our fund to include those assets,” Nicholas said. “We wouldn’t need to launch a new ETF. BLOX is built to provide broad crypto exposure and can integrate new tokens as they’re approved.”