REX Shares Launches Income-Enhanced Crypto Leaders ETF

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The world of exchange-traded funds (ETFs) continues to evolve with innovative strategies that blend high-growth sectors and income generation. REX Shares has stepped into this space with the launch of the REX Crypto Equity Premium Income ETF (CEPI US), an ETF designed to offer investors exposure to leading crypto-related equities while enhancing returns through a covered call strategy.

Listed on Nasdaq with a competitive expense ratio of 0.85%, CEPI combines thematic investing in digital assets with an active income approach—making it a compelling option for investors seeking yield in volatile markets.

A Strategic Blend of Crypto Exposure and Income Generation

CEPI tracks the BITA Crypto Assets & Digital Payments Index, which includes 25 U.S.-listed companies at the forefront of blockchain innovation and digital finance. The index is carefully constructed to capture key segments of the crypto ecosystem:

The selection process is rigorous: the index pulls the top 20 securities from four crypto-centric sub-themes—Blockchain Technology, Crypto Asset Management and Trading, Crypto Banking, Payment and Services, and Crypto Mining—alongside the top five performers from the Digital Payment Systems category. This ensures a balanced mix of pure-play crypto innovators and adjacent fintech leaders.

👉 Discover how income-focused crypto strategies are reshaping modern portfolios.

Smart Index Design for Stability and Performance

To maintain liquidity and market relevance, the index weights its constituents based on 12-month average trading volume, giving greater prominence to actively traded, established players. The 20 “Crypto Asset Leaders” make up 80% of the index, while the five “Digital Payments Leaders” account for the remaining 20%. No single stock exceeds a 5% weight cap, promoting diversification and reducing concentration risk.

Quarterly rebalancing ensures the index stays aligned with market developments, allowing it to adapt to shifts in leadership, technological adoption, and regulatory changes within the digital asset space.

Covered Call Strategy: Boosting Yield in Volatile Markets

What sets CEPI apart is its use of a covered call strategy—a options-based approach where the fund sells call options on stocks it already owns, collecting premiums in return. These premiums are distributed to shareholders as additional income, effectively boosting the ETF’s yield.

This strategy performs particularly well in volatile or sideways markets, where high option premiums can be captured without stocks being called away. Given the inherent price swings in crypto-related equities, CEPI is positioned to benefit from elevated implied volatility, turning market turbulence into a source of income.

However, there’s a trade-off: during strong bull markets, when crypto stocks surge past strike prices, the ETF may underperform due to capped upside. Still, for income-focused investors, this controlled trade-off offers a disciplined way to participate in growth while mitigating downside risk through consistent premium collection.

👉 See how smart income strategies are unlocking value in high-volatility sectors.

Part of a Broader Covered Call Suite

CEPI is the third offering in REX Shares’ growing line of targeted covered call ETFs, joining:

While FEPI focuses on dominant U.S. tech giants like Meta, Amazon, Netflix, and Google, and AIPI targets companies driving artificial intelligence innovation, CEPI brings this proven income model to the fast-moving world of digital assets.

Despite its specialized focus, CEPI’s 0.85% expense ratio is slightly higher than FEPI and AIPI’s 0.65%, reflecting the complexity of managing options in a more volatile sector and potentially higher trading costs.

Leadership Vision: Building Next-Gen Investment Tools

Greg King, CEO of REX Financial, emphasized the transformative potential of crypto and the firm’s mission to deliver innovative tools:

“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. We remain committed to building first-of-their-kind tools to help traders and investors harness opportunities in the market.”

This vision aligns with a growing demand for thematic, income-enhancing products that go beyond passive indexing—offering active management techniques within an ETF structure.

Core Keywords for SEO Optimization

To ensure strong search visibility and relevance, the following core keywords have been naturally integrated throughout this article:

These terms reflect key investor search intents around digital asset investing, yield enhancement, and strategic ETF selection.

Frequently Asked Questions (FAQ)

Q: What is a covered call ETF?
A: A covered call ETF generates income by selling call options on stocks it owns. The premiums collected from these options are passed on to investors as enhanced yield, though upside potential is limited if stocks rise above the strike price.

Q: How does CEPI generate income?
A: CEPI earns income by writing (selling) out-of-the-money call options on its portfolio holdings—primarily crypto-related equities. These premiums provide regular income, especially valuable in high-volatility environments.

Q: Is CEPI suitable for long-term growth investors?
A: CEPI is best suited for investors prioritizing income over maximum capital appreciation. While it participates in market gains up to a point, its upside is capped during strong rallies due to the call options.

Q: What types of companies are in CEPI’s portfolio?
A: The fund includes U.S.-listed firms involved in crypto mining, blockchain development, digital payments, crypto trading platforms, and related financial services—selected based on liquidity and sector leadership.

Q: How often is the underlying index rebalanced?
A: The BITA Crypto Assets & Digital Payments Index is reconstituted and rebalanced quarterly to ensure ongoing relevance and performance alignment with market trends.

Q: Can I lose money investing in CEPI?
A: Yes. Like all equity investments, CEPI carries market risk. Additionally, its covered call strategy may underperform in rapidly rising markets. Investors should consider their risk tolerance and investment goals.

👉 Learn how next-generation ETFs are combining growth themes with smart income strategies.

Final Thoughts

The REX Crypto Equity Premium Income ETF (CEPI US) represents a strategic fusion of two powerful trends: the rise of digital assets and the growing demand for yield in uncertain markets. By pairing exposure to leading crypto equities with a disciplined covered call approach, CEPI offers a unique tool for investors navigating volatility without abandoning income goals.

As blockchain technology matures and institutional adoption accelerates, products like CEPI will likely play an increasingly important role in diversified portfolios—bridging innovation and income in one dynamic package.