Nicholas Crypto Income ETF

BLOX

Market cap $252M

While the spot Bitcoin ETF (IBIT) delivered a negative return of -14.62% over the last 6 months, the BLOX fund provided investors with a +15.51% Total Return. Fundamental analysis reveals that BLOX's success stems from its use of underlying physical assets and put spreads, whereas YieldMax's synthetic strategy for LFGY leads to inevitable capital erosion. My stress test indicates that in the event of a 20% Bitcoin drop, LFGY risks losing up to 45% of its NAV.

Nicholas Crypto Income ETF offers diversified crypto exposure with a 36% distribution rate, primarily generated through options strategies and ETP holdings. BLOX provides indirect exposure to Bitcoin and Ethereum, blending ETPs, crypto-related equities, and active options trading for income generation. Distributions are largely classified as return of capital, offering tax deferral benefits for taxable accounts, though recent payouts have declined with crypto weakness.

Crypto's explosive 2025 rally has pushed ETFs like BKCH and STCE sharply higher, putting them in focus for investors before the year ends.

I construct covered call ETF portfolios using a three-bucket approach: safe, moderate, and ultra-high yield for balanced income and risk. Portfolio weightings target 50% in 10–25% yield ETFs, 30% in 25–50% yield, and 20% in 50%+ yield, with regular rebalancing. Proxies like IWMI (safe), BLOX (moderate), and MSTY (ultra-high yield) illustrate how to allocate and manage risk across buckets.

Nicholas Crypto Income ETF (BLOX) offers a unique capital appreciation first, income second strategy, appealing to long-term, income-focused crypto investors. BLOX combines crypto assets and high-growth crypto-related companies, generating income through options while maintaining solid NAV growth and tax-favorable distributions. Despite recent volatility and risks of NAV erosion, BLOX has outperformed peer LFGY since inception, with steadier distributions and less price decline.

Nicholas Crypto Income ETF (BLOX) offers a unique blend of cryptocurrency, crypto miners, trading platforms, and semiconductor stocks for diversified crypto exposure. BLOX employs options strategies to extract weekly dividends, targeting income generation alongside potential capital appreciation in a volatile asset class. Despite a recent -40% drawdown, BLOX remains positive on a 6-month total return basis and is positioned for a potential short-term rebound due to oversold conditions.

Nicholas Crypto Income ETF (BLOX) offers high weekly yields and exposure to Bitcoin and Ethereum, appealing after a 20% crypto pullback. BLOX's conservative option-writing strategy and consistent payouts make it less risky than peers like LFGY, especially in volatile or declining crypto markets. The fund's 36% yield, supported by option premiums and return of capital, enables rapid return of initial investment if payouts remain stable.

Nicholas Crypto Income ETF (BLOX) stands out over YieldMax Crypto Industry & Tech Portfolio Option Income ETF (LFGY) for crypto-focused, option-based income strategies. BLOX's less aggressive option overlay and secondary income focus support better upside capture and more sustainable payouts, favoring long-term total returns. LFGY's higher yield is funded by return of capital, leading to structural NAV erosion and less capital for future rebounds, making it less attractive long-term.

Most dividend exchange-traded funds pay out every quarter.

The Nicholas Crypto Income ETF offers exceptional total returns and weekly payouts, outperforming both crypto peers and Bitcoin since its June 2025 inception. BLOX's active management and flexible options strategies drive its success, enabling a 38.76% annualized yield without sacrificing growth for income. Key risks include short performance history, reliance on manager skill, and broad crypto industry exposure, making conviction in the sector essential.