Asset management company REX Financial recently launched a new ETF that aims to earn income by writing options on cryptocurrency stocks.
The REX Crypto Equity Premium Income ETF implements a "covered call option" strategy, holding a basket of 25 cryptocurrency stocks and writing out-of-the-money options on these stocks to earn income from the option premium.
REX said that the ETF holds stocks in the BITA Crypto Assets and Digital Payments Index, including "stocks engaged in cryptocurrency mining, trading, custody, blockchain technology development and digital payment solution creation."
REX CEO Greg King said in a statement: "Cryptocurrency is changing the financial ecosystem, and we are applying targeted covered call options strategies to the most disruptive companies in the industry." (Cointelegraph)