NEOS has filed to launch a “High Income” Ethereum ETF, leveraging indirect ETP exposure to generate higher yields but with greater risk. The product will operate through a strategy of buying and selling put and call options on spot ETFs, aiming to maximize investor returns.

This move comes as Ethereum delivers exceptional performance, with trading volumes surpassing Bitcoin ETFs two weeks ago, surprising the market. According to ETF analysts, strong institutional inflows have opened the door for large-scale, high-risk strategies like NEOS’s.

NEOS previously launched a similar product for Bitcoin and is now expanding into Ethereum, calling it a “synthetic covered call strategy” because it only has indirect exposure to ETH but can generate higher income compared to direct correlation models. However, the proposal still requires SEC approval.