New ETF Focusing on Coinbase Hits the Market
REX Shares unveiled the REX COIN Growth & Income ETF (COII) on June 4, 2025, designed to offer leveraged exposure to Coinbase Global, Inc. stock while aiming to deliver weekly income through a unique partial covered call strategy.
This innovative financial product distinguishes itself by targeting not just Coinbase but also incorporating other tech stocks, combining various leveraged single-stock strategies. The ETF seeks to capitalize on the growth potential of these tech-focused holdings while providing investors with a structured means to generate regular cash payouts.
Fund Structure and Income Generation Strategy
The primary objective of the COII is to facilitate weekly distributions to its investors, while its secondary goal is to achieve daily investment results between 105% to 150% of COIN’s daily percentage change, before fees. This target leverage aims for approximately 1.25x exposure.
To accomplish this income generation, the fund employs a strategy of selling out-of-the-money call options on around 50% of its synthetic notional exposure, created through swaps and options. This approach retains the remaining half open for potential uncapped upside, balancing the dual goals of income and growth. Currently, the fund’s distributions are solely financed through option premiums, amounting to a 100% return of capital as reported.
As of February 23, 2026, the fund is showing a distribution rate of 40.11% and a 30-day SEC yield of 5.55%. The gross expense ratio is established at 0.99%, and the fund boasts approximately $13.15 million in assets under management.
Unlike traditional strategies where full-portfolio call writing caps profit potential, COII’s approach offers a more nuanced path by applying calls only to half the leveraged exposure. This structure aims to offer a balanced risk-reward dynamic.
Broader Context and Future Expansions
COII is part of REX’s expanding suite of income ETFs that focus on high-growth stocks, such as Nvidia and Tesla, in addition to Strategy, a company involved in tech and healthcare sectors. The firm’s recent SEC filing related to the REX Growth & Income Universe ETF also suggests an ambitious roadmap for further product expansion.
The launch of this ETF comes amid a wave of new income-focused ETFs introduced in 2025-2026, with other firms like Global X also entering the space, reflecting a broader market trend towards income-generating financial instruments.
Despite these positive developments, investors should approach with caution. COII’s leveraged nature could amplify potential losses, and its distributions are not guaranteed, involving the risk that payments may include a return of capital. As of the close on August 25, 2025, COII traded at $23.24.
Market Implications and Forward-Looking Perspectives
As COII establishes itself in the ETF landscape, analysts will be closely monitoring its performance relative to Coinbase and the broader tech sector. Investor sentiment towards specific stocks, particularly in volatile markets like tech and crypto, will likely affect COII’s returns.
This product not only signifies a creative adaptation to income generation in the ETF space but also showcases the evolving financial strategies available to investors seeking recurring income coupled with exposure to high-growth stocks. As more products of this nature emerge, they may shift investment dynamics in both crypto and broader technology markets.
