Investors may consider switching from Coinbase to CONY ETF for monthly income stream

From Nasdaq

July 2, 2025 9:23 am:

Coinbase Global (NASDAQ: COIN) has seen a 58% increase in the past year and a 42% increase in 2025. However, these gains are only on paper as you would need to sell the stock to realize any income. The YieldMax COIN Option Income Strategy ETF (NYSEMKT: CONY) aims to provide a solution by offering access to the upside potential of Coinbase stock while generating a steady monthly income.

The YieldMax COIN Option Income Strategy ETF focuses on maximizing yield by using financial derivatives to transform non-yield-bearing assets into yield-bearing assets. Currently, the ETF has a distribution rate of 72%, higher than other popular ETFs in the YieldMax family. This strategy involves a synthetic covered call options strategy, allowing investors to receive monthly distributions without needing to understand options trading.

Investors may consider buying the YieldMax COIN Option Income Strategy ETF instead of Coinbase Global stock for two main reasons. Firstly, the ETF offers monthly income through distributions, which stockholders do not receive. Secondly, if investors are neutral or moderately bullish on Coinbase, the ETF provides an opportunity for monthly cash flow while the stock trades within a narrow range.

It is important to note that investors should only buy the ETF if they do not expect Coinbase’s price to significantly increase, as this could limit potential upside gains. The ETF offers a trade-off between sacrificing some of Coinbase’s upside potential for monthly cash flow. Investors should assess their expectations for Coinbase’s performance before deciding to invest in the ETF.

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Read more at NASDAQ.: 2 Reasons You May Want to Swap Coinbase for CONY