REX Launches ETF Turning Crypto Volatility Into Weekly Income

The REX IncomeMax Option Strategy ETF, trading under the ticker symbol “ULTI,” represents a significant departure from traditional income-focused investment products. According to company statements, the fund “manages a mix of put and call positions” on volatile equities, employing what REX describes as a “hedge-fund style strategy” to generate cash flow through option premium income. Greg King, founder and CEO of REX and Osprey Funds, explained to Decrypt that “ULTI represents a twist on what we’ve done before, in that it’s a very actively managed, high-income generating strategy based on the most volatile names in the market.”

The fund’s approach centers on option premiums, which reflect the price buyers pay to acquire options contracts and the amount sellers receive for taking on the obligation to buy or sell underlying assets. By purchasing options contracts, investors gain amplified exposure to price swings, creating the potential for income generation from market volatility. The ETF’s composition is expected to shift on a weekly basis, with the fund maintaining exposure to as many as 30 publicly traded firms at any given time, though the specific holdings will change regularly.

While the REX IncomeMax Option Strategy ETF focuses primarily on income generation rather than sector concentration, crypto companies currently feature prominently in its portfolio. The fund holds $230,000 worth of equity across three crypto-focused firms: mining company Core Scientific, cryptocurrency exchange Gemini, and blockchain lender Figure. Notably, Gemini and Figure both debuted on Wall Street earlier this year, representing newer entrants to public markets that often exhibit the volatility the fund seeks to capitalize on.

However, the dynamic nature of the fund’s strategy means crypto exposure may fluctuate significantly over time. As Greg King noted, “This has more of an income focus for investors, rather than a particular sector focus, so it is somewhat coincidental. I imagine it would stay that way for a while, just because crypto is an emerging field.” The weekly rebalancing suggests there may be periods where the product maintains no exposure to crypto firms, reflecting the fund’s commitment to income generation over sector loyalty.

The IncomeMax Option Strategy ETF represents another strategic move by REX Shares in the evolving crypto-linked investment product space. The company recently made headlines with the first U.S. ETF offering exposure to XRP, which debuted last month. Around the same time, REX partnered with Osprey Funds to launch an ETF linked to Dogecoin, the $28 billion meme cryptocurrency. These products demonstrate REX’s multi-faceted approach to creating investment vehicles tied to the crypto market.

The new ULTI fund is distinct from REX’s Crypto Equity Premium Income ETF, which follows a different strategy modeled on an index of 25 U.S. companies actively engaged in crypto-related activities. While the Crypto Equity Premium Income ETF has made 10 distributions since its January inception, REX emphasizes that such distributions are not guaranteed. The IncomeMax Option Strategy ETF hasn’t made its first distribution yet, leaving investors to watch for its initial performance data.

Central to the ULTI ETF’s strategy is its approach to downside protection. According to the company’s website, the fund provides “downside mitigation against extreme market swings” through active buying and selling of securities. This risk management component is crucial given the fund’s focus on what REX describes as “the most volatile names in the market,” including emerging crypto companies that can experience significant price fluctuations.

The active management approach allows the fund to adjust its positions weekly, potentially reducing exposure to companies experiencing extreme volatility while maintaining focus on income generation through options premiums. This flexibility distinguishes the product from more static income strategies and aligns with REX’s broader pattern of creating innovative financial products that bridge traditional finance and emerging digital asset markets.