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Crypto investors have been among the most disappointed in the past month as Bitcoin more than halved from its peak while Ethereum barely breached its all-time high this cycle. If you are thinking about buying the dip in order to generate income, weekly crypto dividend exchange-traded funds (ETFs) including the Roundhill Bitcoin Covered Call Strategy ETF (BATS:YBTC), the Roundhill Ether Covered Call Strategy ETF (BATS:YETH) and the Nicholas Crypto Income ETF (NYSEARCA:BLOX) are a good idea.
These ETFs pay very high yields and capitalize on the volatility of the crypto market. With those high yields, however, comes high risk. The crypto market is already risky. When you add an aggressive covered call overlay on top of it, you’re investing in something on the extreme end of the risk spectrum.
With that in mind, I’d invest only a small amount of money into these ETFs. If you play sensibly and luck is on your side, you can get multibagger returns from these weekly-pay dividend ETFs.
Roundhill Bitcoin Covered Call Strategy ETF (YBTC)
YBTC is the first U.S.-listed Bitcoin covered call ETF. It uses a synthetic covered call strategy on spot Bitcoin ETFs to generate weekly income distributions while providing capped exposure to Bitcoin’s price movements. The drawback is that you also get downside exposure, and the covered call overlay causes significant NAV erosion.
YBTC makes the most sense for someone who wants exposure to Bitcoin’s neighborhood without betting everything on price appreciation. If you believe Bitcoin will recover to six figures but don’t need to capture every last dollar of upside, YBTC lets you collect extraordinary weekly income while you wait. You can reinvest those weekly payouts while waiting to compensate for the NAV erosion.
I’d only buy YBTC if I were confident that BTC’s floor was in the $60k to $70k range.
The yield is 82.1% with a 0.96% expense ratio.
Roundhill Ether Covered Call Strategy ETF (YETH)
YETH is very similar to YBTC, except that the strategy revolves around Ethereum instead of Bitcoin.This is the second-largest crypto project. ETH has historically outperformed BTC in every single cycle since its inception, but it has failed to do that this time around. It ended up peaking in August 2025, a measly 2% gain from the last all-time high in 2021. It’s now barely above $2,000 as of this writing.
This ETF only makes sense if you believe ETH will trade sideways or start a sustained recovery. Covered call strategies perform best in flat-to-slightly-up markets, and you can reinvest the weekly income to offset the NAV erosion. Plus, distributions are 100% ROC, so you defer taxes until you sell.
In short, don’t buy if you don’t understand what you’re getting into.
The yield is 129.16% with a 0.96% expense ratio.
Nicholas Crypto Income ETF (BLOX)
BLOX does not invest directly in Bitcoin, Ether, or any cryptocurrency. It gets crypto exposure through miners, other crypto ETFs, and options on crypto holdings. It then uses an options overlay to generate income. BLOX will pay you to wait during choppy and volatile markets where options premiums are high. You do have to be comfortable letting an active manager switch among options.
As for upside, BLOX does cap it. It has covered-call-like positioning, and this can cap participation in market rallies. Moreover, the yield swings significantly based on the broader market environment, and distributions are not guaranteed.
The portfolio manager is doing everything to minimize NAV erosion as much as possible. Other crypto ETFs have eye-watering yields, with the drawback that the share price melts if the market does not cooperate. The fund has also actively trimmed positions when valuations stopped making sense.
BLOX is better-positioned in this regard. Fees are at 1.03%. The yield is 30.76%.