BTCI and NEHI Draw Capital as Crypto Weakens

Two ETFs that generate income by writing options on spot cryptocurrency ETFs have attracted investor capital even as bitcoin and ether weakened this year. The NEOS Bitcoin High Income ETF (BTCI) holds $1.15 billion in assets and has recorded roughly $500 million of inflows so far in 2026. BTCI’s distribution rate is 26.72%. The NEOS Ethereum High Income ETF (NEHI) carries a 32.99% distribution rate.

Both funds sell call options on liquid spot ETFs that hold bitcoin and ether. The option premiums provide cash that the funds pay out to shareholders as regular distributions. BTCI will mark its second anniversary in October; NEHI applies a similar call-writing approach to ether.

Market participants have added these structured income products alongside traditional spot ETFs since the January 2024 launch of spot bitcoin ETFs. Financial advisors are combining plain-vanilla crypto exposure and structured, income-focused ETFs in client portfolios. The options overlays allow some participation in price moves while producing income from written option premiums; they can also cap upside in strong rallies.

Todd Rosenbluth, director of research at VettaFi, noted that BTCI combines bitcoin exposure with options to generate additional income and has been a popular bitcoin-related ETF, with about $500 million in inflows this year. He added that investors are taking exposure to cryptocurrencies in multiple forms, including both spot and options-based products.

Fund providers say these ETFs appeal to investors seeking systematic income tied to bitcoin and ether. The continued inflows to BTCI and the high distribution rate at NEHI illustrate investor interest in income-oriented ways to access the two largest cryptocurrencies.