NEOS Launches 150% Exposure Boosted Bitcoin Income ETF with 0.98% Fee
NEOS Investments introduced a boosted Bitcoin high-income ETF (XBCI) with 150% notional exposure using an options overlay, charging a 0.98% expense ratio and distributing income monthly. The fund holds spot BTC ETPs via a CFC subsidiary and employs call/put spreads to amplify exposure and premium income.
1. Launch of Boosted Bitcoin ETF
NEOS Investments rolled out the NEOS Boosted Bitcoin High Income ETF (XBCI) last week, marking its expansion beyond equity benchmarks with a crypto-focused income product. The fund targets monthly distributions and carries an annual expense ratio of 0.98%.
2. Synthetic Options Overlay Strategy
Rather than using daily-reset leverage, XBCI employs a synthetic options overlay—buying calls and selling puts at similar strikes—to achieve sustained 150% market exposure while generating premium income. This structure aims to lower financing costs compared with conventional leveraged ETFs.
3. Bitcoin Exposure via CFC Structure
To optimize tax treatment, XBCI holds spot Bitcoin ETPs through a controlled foreign corporation subsidiary. The fund layers both its base and boosted exposures through options on Bitcoin-linked instruments, differentiating it from standard covered-call models.