This is an actively managed covered call ETF that holds shares of US-listed crypto-related companies and sells call options to generate current income. It provides diversified exposure to listed companies across the crypto ecosystem, including mining, exchanges, custody, and blockchain development.

It suits investors who want exposure to the crypto-related stock theme along with regular option income.

The ETF is managed by Rex Shares using an active management approach.

The fund allocates a substantial portion of its net assets to US-listed companies involved in crypto mining, trading, custody, blockchain development, and digital payments. It then sells call options with strike prices above the current market price on these holdings to collect option premiums. This structure lets the fund retain part of the underlying stocks' upside while generating a source of funds for monthly distributions.

• Combines the crypto-related stock theme with a covered call income strategy
• Non-diversified portfolio with concentrated exposure to a specific industry

Assets under management (AUM) stand at $119.3M, and the total expense ratio is 0.85% per year.

As with comparable crypto and AI-themed covered call ETFs, fee levels and distribution rate volatility may differ.

Because the underlying crypto-related stocks are highly volatile, the net asset value tends to swing widely, while the call option selling limits participation in rising markets. Crypto-related stocks as a group clearly tend to move together with changes in crypto prices.

The fund belongs to the thematic covered call category, where fund flows occur as interest in the crypto market meets demand for income products. Fund flows across related thematic ETFs also tend to fluctuate with the crypto price cycle.

Regular option income and crypto theme exposure are its strengths, while the non-diversified structure and limited participation in rallies are seen as drawbacks.

The AIPI product shown alongside it in the table uses the same covered call structure but targets AI-related stocks, while the LFGY product is a similarly themed ETF that applies an option income strategy to crypto industry and technology stocks, with a comparable strategic approach. Investors who want direct exposure to crypto itself can also consider IBIT, a spot Bitcoin ETF, and ETHA, a spot Ethereum ETF, and WGMI, which specializes in crypto mining stocks, is another related alternative.

These are the points to review before investing in CEPI. Investors need to understand both the concentrated crypto theme exposure and the characteristics of the covered call structure, and should also check the fee level and the nature of the distribution source in advance.

The key risks are the non-diversified portfolio concentrated in crypto-related industries and the limited upside participation caused by call option selling. During sharp declines in crypto prices, related stocks as a group may fall together.

It is a suitable choice for investors who want crypto theme exposure and regular income at the same time, and it is recommended to include it in a portfolio with industry concentration risk and limited participation in rallies in mind.