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Globe and Mail
5 days ago
- Business
- Globe and Mail
Nicholas Wealth Announces Distribution Rate on $BLOX
Nicholas Wealth, a leading provider of actively-managed income ETFs, announced weekly distributions of 36.00% for the Nicholas Crypto Income ETF (BLOX). Distribution as of 8/4/2025 Inception date: 6/17/2025 Click here to view standardized performance for BLOX. BLOX, launched in partnership with Tidal Investments LLC, offers investors access to both the growth potential of the digital asset market and an income stream that is often absent from traditional crypto investments. The fund combines three complementary components within a single structure: crypto-focused equity, direct Bitcoin and Ether exposure, and an options overlay. BLOX is the latest ETF in the XFUNDS by Nicholas Wealth suite. The Nicholas Fixed Income Alternative ETF (FIAX) launched in 2022 and seeks to provide income using U.S. Treasury fixed income securities and a defined risk option premium. In 2024, XFUNDS debuted the Nicholas Global Equity and Income ETF (GIAX), designed to offer exposure to global equities while selling index call spreads to generate income. Learn more about XFUNDS by Nicholas Wealth here: * The Distribution Rate is the annual rate an investor would receive if the most recent distribution, which includes option income, remained the same going forward. The Distribution Rate is calculated by multiplying an ETF's Distribution per Share by twelve (12), and dividing the resulting amount by the ETF's most recent NAV. The Distribution Rate represents a single distribution from the ETF and does not represent its total return. ** The 30-Day SEC Yield for BLOX is -0.82%. The 30-Day SEC Yield represents net investment income, which excludes option income, earned by such ETF over the 30-Day period ended X, expressed as an annual percentage rate based on such ETF's share price at the end of the 30-Day period. Distributions are not guaranteed. The Distribution Rate and 30-Day SEC Yield are not indicative of future distributions, if any, on the ETFs. In particular, future distributions on any ETF may differ significantly from its Distribution Rate or 30-Day SEC Yield. You are not guaranteed a distribution under the ETFs. Distributions for the ETFs (if any) are variable and may vary significantly from month to month and may be zero. Accordingly, the Distribution Rate and 30-Day SEC Yield will change over time, and such change may be significant. The recent BLOX distribution on 7/28/2025 contains 100.00% return of capital and 0.00% income. The performance data quoted above represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted above. Performance current to the most recent month-end can be obtained by calling (855) 563-6900. The Fund does not invest directly in bitcoin, ether, or any other digital assets. The Fund does not invest directly in derivatives that track the performance of bitcoin, ether, or any other digital assets. The Fund does not invest in or seek direct exposure to the current 'spot' or cash price of bitcoin or ether. Investors seeking direct exposure to the price of bitcoin or ether should consider an investment other than the Fund. Although bitcoin and ether may each be referred to as a 'cryptocurrency', neither is yet widely accepted as a means of payment. About Nicholas Wealth At Nicholas Wealth Management, we believe in making a positive difference in the lives of our clients by staying true to our principles and keeping our promises. Since 2012, we've aimed to help individuals secure their financial future with the goal of generating income and preserving wealth. Building wealth takes years of discipline and hard work. Our comprehensive approach seeks to maximize the amount individuals get to keep from their hard-earned investment and retirement savings. About Tidal Investments LLC Formed by ETF industry pioneers and thought leaders, Tidal Investments LLC sets out to revolutionize the way ETFs have historically been developed, launched, marketed, and sold. With a focus on growing AUM, Tidal offers a comprehensive suite of services, proprietary tools, and methodologies designed to bring lasting ideas to market. Tidal is an advocate for ETF innovation. The firm is on a mission to provide issuers with the intelligence and tools needed to efficiently and to effectively launch ETFs and to optimize growth potential in a highly competitive space. For more information, visit Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (855) 563-6900 or visit our website at Read the prospectus or summary prospectus carefully before investing. Investments involve risk. Principal loss is possible. Underlying Fund Risk. The Fund's investment strategy, involving indirect exposure to bitcoin and ether through one or more Underlying Funds, is subject to the risks associated with bitcoin and ether. Shareholders in the Fund bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of the Underlying Funds. Underlying Bitcoin and Ether Fund Risks: Investing in an Underlying Fund that focuses on bitcoin or ether, either through direct holdings or indirectly via derivatives like futures contracts and swaps, carries significant risks. These risks include high market volatility, which can be influenced by technological advancements, regulatory changes, and broader economic factors. When trading derivatives, liquidity risks and counterparty risks are substantial. Managing futures contracts can be complex and may affect the performance of an Underlying Fund. The use of swap transactions is a highly specialized activity, which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. Additionally, each Underlying Fund, and consequently the Fund, is dependent on blockchain technology, which brings technological and cybersecurity risks, along with custodial challenges for securely storing digital assets. The constantly evolving regulatory and legal landscape presents continuous compliance and valuation difficulties. Risks related to market concentration and network issues in the digital asset sector further add complexity. Moreover, operational intricacies in managing digital assets and potential market volatility can lead to losses for each Underlying Fund. Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund's investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund's other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions. Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in option contracts which exposes the Fund to the risk that the counterparty will not fulfill its obligation to the Fund. Equity Market Risk. By virtue of the Fund's investments in option contracts equity ETFs and equity indices, the Fund is exposed to common stocks indirectly which subjects the Fund to equity market risk. High Portfolio Turnover Risk. The Fund may actively and frequently trade all or a significant portion of the Fund's holdings. A high portfolio turnover rate increases transaction costs, which may increase the Fund's expenses. Non-Diversification Risk. Because the Fund is 'non-diversified,' it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund. Hedging Transactions Risk. Hedging transactions involve risks different than those of underlying investments. In particular, the variable degree of correlation between price movements of hedging transactions and price movements in the position being hedged means that losses on the hedge may be greater than gains in the value of the Fund's positions, opportunities for gain may be limited or that there may be losses on both parts of a transaction. Illiquid Investments Risk. The Fund may, at times, hold illiquid investments, by virtue of the absence of a readily available market for certain of its investments, or because of legal or contractual restrictions on sales. Interest Rate Risk. The value of the Fund's investments in fixed income Treasury securities will fluctuate with changes in interest rates. New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.
Yahoo
04-07-2025
- Business
- Yahoo
Crypto ETF BLOX, Which Offers Digital Asset Exposure and Options Income, Gains Steam
A recently launched crypto ETF in the U.S., which offers diversified exposure to digital assets along with options income, is gaining traction in a sign that investors are looking beyond traditional, single-spot-focused products. The Nicholas Crypto Income ETF (BLOX), an actively managed ETF designed for diversified exposure to the digital assets ecosystem while generating additional income via options strategies, went live on the NYSE on June 17. The ETF is the latest addition to the XFUNDS by Nicholas Wealth suite. Since then, the ETF has registered a net inflow of around $4.52 million, according to data source VettaFi. BLOX's website puts the total net assets at $4.9 million. "The options income space is almost becoming its own asset class," David Nicholas, CEO of XFUNDs, told CoinDesk in an interview, adding that the fund is drawing interest from yield-hungry retail investors. The fund, launched in partnership with Tidal Investments LLC, comprises of an equity sleeve that invests in publicly listed shares of crypto-related firms and companies holding digital assets on their balance sheets. The second sleeve of the fund offers exposure to select bitcoin and ether exchange-traded funds, with the flexibility to expand exposure to other digital assets through potential regulated vehicles. As of Thursday, the fund's top 10 holdings included names such as BlackRock's spot Ethereum ETF, Coinbase, Nvidia, MARA, Core Scientific, and others. The unique mix of holdings ensures that the performance isn't entirely dependent on bitcoin's (BTC) price. "We own about 11 businesses, and we have high conviction that they will benefit from Bitcoin or Ether appreciation, but they aren't crypto assets themselves. So, you gain exposure to both cryptocurrency and publicly traded companies with earnings and growth. We think that combination inside the fund is pretty unique," Nicholas said. Finally, there is an options sleeve that generates income. The fund writes call/put spreads on the crypto sleeve while selectively writing covered calls or put spreads on its equity holdings. Writing an option is akin to selling insurance against bullish or bearish price moves in return for an upfront premium, which represents the income of the writer (seller). Writing put spreads against holdings allows the fund to collect premiums as the assets appreciate, providing additional income alongside the gains from the underlying holdings. BLOX trades options tied to the spot ETFs, including those linked to BlackRock's spot bitcoin ETF, IBIT. For instance, shares in Coinbase, one of the ETF's top 10 holdings, rose over 14% in the last week of June. The fund's three-sleeved structure means it likely captured the full rally alongside income through put spreads. The same can be said with respect to Core Scientific, which recently rose 15%. "That's what's great about put spreads—there's no cap. A put spread is a long, bullish options position," Nicholas said. The income from options and dividends on stock holdings is distributed to subscribers every week. Note that crypto holders have been writing put spreads and higher-strike calls on the offshore derivatives giant Deribit for some time. These yield-generation strategies are quite popular in the equity markets. When asked about the growing interest in ETFs tied to major altcoins such as Solana's SOL (SOL), XRP (XRP) and others, Nicholas said they will accommodate the new ones as and when they become available. "Once the SEC approves others—like Solana, which has a pending ETF—we can file an amendment and add them to our fund. So we wouldn't need a new ETF. Since we see this as a broad crypto exposure fund, we'd just edit the existing structure to include new assets," Nicholas told in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-06-2025
- Business
- Yahoo
New ETF Offers Crypto Exposure and Income Stream
As crypto makes its way into the mainstream, investors are looking for ways to get exposure to both the most popular coins, as well as the companies that build and maintain the technology's infrastructure. The Nicholas Crypto Income ETF (BLOX), which hit the market Tuesday, offers both in addition to an income stream. BLOX, launched by Nicholas Wealth in partnership with Tidal Investments, is an actively managed exchange-traded fund that combines an equity portfolio, a crypto portfolio, and an options overlay, according to a press release. The expense ratio is 1.03%. 'When you think of crypto, there's a lot of money that's gone into singular names like MicroStrategy or Coinbase, and these stocks have had a great run,' David Nicholas, CEO of XFunds, told But investors are now looking to get exposure in a more diversified way, he added. BLOX's equity component includes investment in publicly traded companies that help make up various aspects of the crypto ecosystem, including crypto mining, trading platforms, blockchain technology providers, financial services firms and companies holding significant crypto assets on their balance sheets. Coinbase Global Inc. (COIN), Robinhood Markets Inc. (HOOD), Strategy (MSTR) and Block Inc. (XYZ) are among its top 10 holdings. The crypto sleeve of the fund provides direct exposure to Bitcoin and Ether through U.S.-listed ETFs and exchange-traded products, including the iShares Ethereum Trust ETF (ETHA). As for income, the fund sells put spreads on the crypto sleeve and selectively writes covered calls or put spreads on the equity holdings. Nicholas said that while there are covered call ETFs available that have high assets under management, with covered calls you are 'essentially capping your upside.' That's not the case with BLOX. 'If you're looking to buy Bitcoin, you believe that the future is bullish for Bitcoin, meaning you want to capture as much upside as you can,' Nicholas added. The fund offers weekly dividends and distributions, as opposed to monthly ones. XFunds by Nicholas Wealth has a history of providing income for investors through an options strategy. The firm also offers the Nicholas Fixed Income Alternative ETF (FIAX), which launched in 2022 and seeks to provide investors with income via U.S. Treasury fixed-income securities and a defined risk option premium. In 2024, the firm introduced the Nicholas Global Equity and Income ETF (GIAX), which offers exposure to global equities and generates income by selling index call | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
