Summary Nicholas Crypto Income ETF (BLOX) offers diversified crypto exposure with a focus on generating weekly income through an options overlay strategy. BLOX combines crypto-related equities, regulated Bitcoin/Ether ETFs, and systematic options to monetize volatility and deliver an annualized yield near 9%. The ETF provides a unique way to benefit from crypto's growth and volatility without direct custody, appealing to yield-seeking investors amid rising institutional adoption. BLOX carries high volatility and regulatory risks, but for those accepting these trade-offs, it offers a novel approach to income from digital assets. Digital assets aren’t going away.. Cryptocurrencies are maturing beyond a phase of speculation to becoming an institutional-grade asset just as investors everywhere search for new sources of yield. That convergence—growth meeting income—is rare. And if you see opportunity in that dynamic, then the Nicholas Crypto Income ETF (NYSEARCA: BLOX ) might deserve a closer look. A New Kind of Crypto Exposure BLOX launched mid-2025. It’s actively managed and intended to provide investors with ongoing income through exposure to a range of crypto-linked assets. Instead of simply owning digital coins, the fund is broken down into three parts — crypto-related equities; Bitcoin and Ether exchange-traded funds; and a systematic options overlay that sells calls and puts to capture risk premiums. nicholasx.com/blox/ In the real world BLOX looks like a hybrid equity-fund, a crypto tracker and covered-call strategy. Part of the equity sleeve lists names like Coinbase, Riot Platforms, Marathon Digital, Robinhood and Galaxy Digital and chipmakers such as NVIDIA and TSMC that contribute to the computing backbone for mining and blockchain infrastructure. Its crypto exposure comes from holdings such as the VanEck Bitcoin ETF, Fidelity Wise Origin Bitcoin Fund and iShares Ethereum Trust, providing the portfolio with direct sensitivity to Bitcoin and Ether prices without custody risk. About a third of assets are resting in those regulated funds, and cash balances remain to back up collateral for the options strategy. Monetizing Volatility for Weekly Income stockcharts.com The difference between BLOX and most other funds is its source of yield. This ETF pays dividends weekly. Those payments largely come from option premiums rather than traditional dividends. Payouts have averaged to the tune of $0.15-$0.18 per share per week since inception, which would lead to about a 9% annualized yield. nicholasx.com/blox/ In practice then, BLOX turns crypto’s volatility into cash flow — paying investors for the market’s inherent instability instead of simply leaving them at its mercy. The fund is also structured to provide some protection against moderate declines, as option income can counteract a portion of the drop in asset prices. The Bigger Picture: Crypto Meets Income Investing BLOX’s introduction also arrives as digital assets earn regulatory approval and institutional support. The era of the Bitcoin ETF, tokenization projects and further blockchain infrastructure spending. In the meantime, the hunger for yield amid interest-rate normalization remains strong. BLOX is placed between these two, providing exposure to the potential upside of crypto while also catering for yield hungry investors. This strategy — monetizing volatility via options — is one already used in equity markets but now applied to crypto’s special kind of volatility. Moreover if adoption of blockchain continues to grow and tokenisation becomes part of the global financial system, then the companies and assets in BLOX could do very well. The ETF effectively allows conventional investors to participate in that evolution without having to bother with the complexities of wallets, staking or decentralized platforms. Risks and Considerations Innovation always carries uncertainty. BLOX’s holdings can be some of the most volatile in the public markets and steep drawdowns in Bitcoin or Ethereum could quickly put pressure on their NAV. The options overlay — which provides income, but can cap upside when the market is running and also exposes the fund to potential losses if markets move too bondlike or in a violent fashion — is a big differentiator. There is also the regulatory risk: tougher crypto oversight or unfavorable rulings against exchanges could impact the portfolio. And because it’s such a young strategy, there’s little proof for investors how the approach performs over a full crypto cycle. BLOX isn’t a conservative income fund — it’s a highly aggressive income experiment, designed to see if crypto’s volatility can be turned into a feature rather than just one of its many bugs. For investors willing to accept that trade-off, it has something new to offer: the chance to collect yield from the same forces that drive crypto’s price swings. Conclusion The Nicholas Crypto Income ETF captures a sweet spot in themes: digital-asset adoption and income generation. It’s an attempt to convert a historically yieldless, high-volatility market into a reliable stream of cash flow. For ETF investors looking for diversified exposure to crypto with real income, this could be an early example of where innovation and opportunity meet.
