Rex Crypto Equity Income & Growth UCITS ETF (Dist)

Issuer: HANetf

Asset Class: Alternative

TER: 65bps

Trading Currency: GBX

Pays Income: False

Listing Date: 02 Jul 2025

Ticker: CEPG

ISIN: IE0008BA4TY1

This actively managed fund seeks to deliver a combination of current income and capital appreciation by providing indirect exposure to the digital asset space. The strategy focuses on investing in publicly listed companies and exchange-traded products that are integral to the crypto ecosystem. This includes firms involved in crypto mining, blockchain technology, digital asset exchanges, and other related services. By holding these equity-based instruments, the portfolio aims to capture the long-term growth potential of the broader adoption and development of digital assets, without holding cryptocurrencies directly.

A core feature of the fund's strategy is its use of a covered call overlay to generate income. The portfolio manager systematically sells call options on the fund's underlying holdings. The premiums received from selling these options are distributed to investors, creating a regular income stream. This approach is designed to enhance total returns, particularly in flat or moderately rising markets, and can provide a partial cushion against price declines. However, this strategy also caps the potential for capital appreciation, as the underlying securities may be 'called away' if their price rises significantly above the option's strike price.

This product may appeal to investors who are constructive on the long-term outlook for the crypto industry but are also seeking regular income and a potentially less volatile way to gain exposure compared to direct investments in cryptocurrencies. It offers a diversified portfolio of crypto-related equities within the regulated and accessible framework of a UCITS vehicle. The income-generating component can be particularly attractive for those looking to supplement their portfolio's yield while participating in a high-growth thematic area.