Gold is trading at fresh record highs, while bitcoin continues to consolidate just under its $100,000 peak. Beyond their traditional roles — gold as a safe haven and bitcoin as a high-risk diversifier — both assets are increasingly being used to generate investment income through option-based exchange-traded funds.
Demand for alternatives
With equities at record levels but heavily concentrated in mega-cap tech, and bonds showing unusual volatility in the classic 60-40 portfolio, investors are seeking alternatives that provide diversification without sacrificing income.
“Gold can provide a safe haven, while bitcoin has been very rewarding,” said Todd Rosenbluth, head of research at VettaFi, on CNBC’s ETF Edge. “If you’re looking for diverse ways to get income, these covered call strategies have become increasingly popular.”
ETF innovation
BlackRock underscored that point this week, filing for a bitcoin premium income ETF through its iShares platform. Simplify Asset Management was among the first to experiment with the approach, offering the Simplify Gold Strategy Plus Income ETF (YGLD) and Simplify Bitcoin Strategy Plus Income ETF (MAXI), which layer covered call strategies over gold and bitcoin futures.
“For clients funding this from a bond portfolio, they don’t have to sacrifice on income potential,” said Paisley Nardini, head of multi-asset solutions at Simplify.
Size versus incumbents
Assets remain small compared to traditional exposures. MAXI manages just over $51 million, with most of its allocation in the $85 billion iShares Bitcoin Trust (IBIT). YGLD has $44 million, dwarfed by the SPDR Gold Trust (GLD) at roughly $120 billion. NEOS Investments’ NEOS Gold High Income ETF (IAUI) has grown to more than $115 million.
Performance and yield trade-off
The gold and bitcoin income ETFs show a mixed profile. MAXI is up 12% year-to-date, trailing IBIT’s 17% gain, but offers a trailing 12-month yield above 43%. YGLD has surged 69% year-to-date versus 42% for GLD, with a trailing yield near 5%.
The trade-off is clear: income overlays blunt gold’s traditional upside and cap bitcoin’s explosive potential. But they appeal to retail investors focused on yield. “When you see a high level of income kicking off a strategy, that’s what captures investors’ attention,” Nardini said.
Broader ETF trend
The income-overlay model is expanding rapidly across the ETF space. Equity-focused funds like JPMorgan’s JEPI have drawn billions by pairing stock exposure with covered call premiums. Other issuers are now launching ETFs tied to high-profile portfolios — such as Warren Buffett’s or Bill Ackman’s — combined with income payouts.
“ETFs are simply the most efficient way of accessing these strategies,” Rosenbluth said. “It’s a reflection of how investors are rethinking portfolio construction.”
