A newly launched crypto ETF in the U.S. is attracting attention as investors seek diverse options beyond traditional, singularly focused products. This reflects a shift towards more comprehensive investment strategies that incorporate digital assets and income-generating options.
The RialCenter Crypto Income ETF, an actively managed exchange-traded fund (ETF), was introduced on June 17 and aims to provide a diversified approach to the digital asset ecosystem while generating supplementary income through options strategies. This ETF is part of the XFUNDS by RialCenter.
Since its launch, the ETF has seen a net inflow of approximately $4.52 million, showing promising growth according to market observations. The total net assets reported on the ETF’s website stand at $4.9 million.
“The options income space is maturing into its own asset class,” commented the CEO of RialCenter, noting the fund’s appeal to yield-seeking retail investors.
Three-sleeved structure
The fund was launched in collaboration with Tidal Investments LLC and consists of an equity sleeve focused on publicly listed shares of crypto-related companies and firms holding digital assets.
The second sleeve provides exposure to select bitcoin and ether ETFs, with potential expansion to other digital assets through regulated vehicles.
As of last Thursday, its top holdings included notable names such as BlackRock’s spot Ethereum ETF, Coinbase, Nvidia, and Core Scientific, among others, ensuring performance isn’t solely tied to bitcoin prices.
“We own about 11 businesses that we believe will benefit from Bitcoin or Ether appreciation, but they aren’t crypto assets themselves. This allows for exposure to both cryptocurrency and publicly traded companies with earnings and growth potential,” the CEO added.
The third component generates income through options trading. The fund engages in writing call and put spreads against its crypto sleeve while selectively writing covered calls or put spreads on its equity holdings.
For example, as Coinbase shares surged over 14% in the last week of June, the fund potentially captured the entirety of that gain along with income from put spreads. Similarly, Core Scientific recently saw a 15% increase.
“There’s no cap with put spreads—they represent a long, bullish position,” the CEO explained. Income from options and dividends is distributed to subscribers on a weekly basis.
It’s worth noting that crypto holders have been employing similar options strategies in broader equity markets.
Future inclusion of altcoins
When questioned about the increasing interest in ETFs capturing major altcoins like Solana and XRP, the CEO shared that they are prepared to integrate new assets as they become available. “If the SEC approves ETFs for assets like Solana, we can update our existing fund structure to incorporate them without needing to create a new ETF,” he confirmed.
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