ETF fund manager REX Financial has debuted the REX Crypto Equity Premium Income ETF [Nasdaq:CEPI]. CEPI aims to provide investors with exposure to leading cryptocurrency companies while generating an enhanced monthly income using an advanced covered call strategy.
CEPI will seek to provide investors with what REX Financial describes as “unique access to the top 25 U.S. crypto-related companies” via the BITA Crypto Assets & Digital Payments Index. This includes those that operate in crypto mining, trading, custody, blockchain technology development, and the creation of digital payment solutions.
CEPI executes an out-of-the-money call writing strategy across the individual stocks within the index, balancing the potential for income generation and price appreciation. This innovative approach is designed to help investors better capitalize on the cryptocurrency sector’s volatility and upside potential.
CEPI joins REX’s line-up as the firm’s third covered call ETF, following the flagship FANG & Innovation Equity Premium Innovation ETF (Nasdaq: FEPI) and the REX AI Equity Premium Income ETF (Nasdaq: AIPI).
Since its launch a year ago, FEPI and AIPI have accumulated over $500 million in assets under management and offer an annualized distribution rate of 25.2% and 34.8% respectively (as of 11/25/24) and a 30-day SEC yield of -0.09% and -0.18% (as of 10/31/24).
“Crypto is transforming financial ecosystems and creating unique investment opportunities. With CEPI, we’re applying our targeted covered call strategy to the sector’s most disruptive companies, creating new opportunities for income generation,’ said Greg King, CEO of REX Financial. “We remain committed to building first-of-their-kind tools to help traders and investors harness opportunities in the market.”
