The median crypto option-income fund lost more than bitcoin, then trailed the rebound
The median crypto option-income fund lost 30.6% in the year through September 30, 2026, distributions reinvested, more than the 27.2% loss for the iShares Bitcoin Trust, IBIT.
Key takeaways
In the twelve months through Wednesday, September 30, the median crypto option-income fund lost 30.6%, distributions reinvested. The iShares Bitcoin Trust, IBIT, a fund that holds bitcoin, lost 27.2%.
Two funds counted in that median hold stocks rather than a coin, and they finished the year better than the funds tied to a coin. Even with them included, the middle fund lost more than IBIT.
In the quarter, IBIT rose 42.2% and the median fund rose 34.6%. The stock funds barely rose, which widens that gap. The largest fund tied to bitcoin trailed IBIT too.
These funds sell call options and pay the cash out. Selling a call collects money now and gives away gains above a set price.
Most of the money sits in one fund. The NEOS Bitcoin High Income ETF, BTCI, has $1.39 billion of the $2.43 billion in the category's 22 funds. It gets bitcoin exposure from other funds and from options, and it sells calls. It does not hold bitcoin itself.
BTCI lost 25.7% over the year once the checks were put back in. The share price fell 43.2%. The checks cut 17.5 percentage points off that price loss, and the fund still finished only 1.5 percentage points ahead of IBIT.
In the quarter, BTCI rose 34.4%, which is 7.8 percentage points behind IBIT.
The September payment was $0.72 a share, down 46% from $1.34 a year earlier. NEOS, in its notice for the payment due Friday, September 18, wrote: "It is anticipated that 95% of such dividend will be a return of capital."
A return of capital hands back money the holder already invested. NEOS said the 95% is an estimate, not a final tax figure, and that it should not be read as income or as performance.
Roundhill's YBTC sells weekly calls on funds that hold bitcoin. YieldMax's YBIT sells call options or call spreads on bitcoin funds. Figures are total return, distributions reinvested.
YBTC lost more than IBIT over the year, and it gave up more of the rebound than the other bitcoin funds in the table.
BTCI stayed close on the way down, then both lagged the rebound
- IBIT
- BTCI
- YBTC
- Year
- IBIT −27%
- BTCI −26%
- YBTC −34%
- Quarter
- IBIT +42%
- BTCI +34%
- YBTC +24%
The gap was wider in ether. Roundhill's YETH sells calls on ether funds, and it rose 39.0% in the quarter. ETHA, the iShares fund that holds ether, rose 69.2%.
CEPI and LFGY hold stocks rather than a coin, and they use options on that book for income. The 13.6% gain on CEPI was the best full-year result in the category. Neither rose with IBIT in the quarter.
YieldMax estimated that 95.47% of the YBIT distribution it declared on Wednesday, September 23 was return of capital. NEOS had anticipated 95% for the September dividend on BTCI. Both issuers called the figure an estimate. The cash arrived, and on those estimates, almost all of it was money the holder had already put in.
ETFs in this story
Frequently asked questions
How much did the median fund lose against bitcoin?
The median crypto option-income fund lost 30.6% in the year through September 30, 2026, distributions reinvested, while the iShares Bitcoin Trust lost 27.2%.
Did these funds trail the rebound?
In the quarter, the iShares Bitcoin Trust rose 42.2% and the median fund rose 34.6%.
How do these funds generate the cash they pay out?
They sell call options and pay the cash out, collecting money now and giving away gains above a set price.
Was the September payout a return of capital?
NEOS anticipated that 95% of the September dividend on its bitcoin income ETF would be a return of capital, and YieldMax estimated 95.47% for its fund, with both issuers calling the figure an estimate.
