Nicholas Crypto Income ETF BLOX Sees $4.52 Million Inflow

The Nicholas Crypto Income ETF (BLOX), launched on June 17, has garnered significant attention from investors seeking diversified exposure to digital assets and options income. This actively managed ETF, part of the XFUNDS by Nicholas Wealth suite, offers a unique three-sleeved structure designed to provide comprehensive exposure to the digital assets ecosystem while generating additional income through options strategies.

Since its inception, BLOX has seen a net inflow of approximately $4.52 million, with total assets under management nearing $4.9 million. This inflow indicates a growing interest among investors in products that go beyond traditional, single-spot-focused crypto investments. The fund's structure includes an equity sleeve that invests in publicly listed shares of crypto-related firms and companies holding digital assets on their balance sheets, a second sleeve offering exposure to select bitcoin and ether exchange-traded funds, and an options sleeve that generates income through call/put spreads on the crypto sleeve and covered calls or put spreads on its equity holdings.

The equity sleeve of BLOX includes top holdings such as BlackRock's spot Ethereum ETF, Coinbase, Nvidia, MARA, and Core Scientific. This diverse mix ensures that the fund's performance is not solely dependent on the price of bitcoin, providing a more balanced investment approach. The options sleeve, which writes call/put spreads on the crypto sleeve and selectively writes covered calls or put spreads on its equity holdings, generates income by collecting premiums as the assets appreciate. This income, along with dividends from stock holdings, is distributed to subscribers on a weekly basis.

David Nicholas, CEO of XFUNDS, highlighted the growing interest in the options income space, noting that the fund is attracting yield-hungry retail investors. The three-sleeved structure of BLOX allows it to capture full rallies in the underlying assets while generating additional income through put spreads. For example, shares in Coinbase and Core Scientific, both top 10 holdings of the ETF, saw significant gains in the last week of June, demonstrating the fund's ability to benefit from both asset appreciation and options income.

Looking ahead, Nicholas indicated that the fund is open to including major altcoins such as Solana's SOL and XRP as they become available. Once the SEC approves ETFs tied to these altcoins, BLOX can file an amendment to include them in its existing structure, further broadening its exposure to the digital assets ecosystem. This flexibility positions BLOX as a comprehensive and adaptable investment vehicle for investors seeking diversified exposure to digital assets and options income.