What Is CONY? YieldMax COIN Option Income Strategy ETF
Short answer
CONY is a YieldMax single-stock option-income ETF that sells call options on Coinbase (COIN) to generate very large, frequent cash distributions, with a headline distribution rate that has run well above 100% annualized. That number is a distribution rate, not a guaranteed return, and a large share of recent payouts has been return of capital rather than earned income. The strategy caps your upside when COIN rallies, still exposes you to most of COIN's declines, and the heavy payouts tend to erode the fund's net asset value, so CONY's total return can fall far short of simply owning COIN. Its expense ratio is 1.04%. It is an income and trading tool, not a buy-and-hold proxy for Coinbase.
CONY is issued by YieldMax (advised by Tidal Investments / Tidal Trust II) and tracks synthetic covered-call income on Coinbase (COIN). It charges a 1.04% expense ratio, holds approximately ~$370 million (early 2026) in assets under management, yields about Headline distribution rate is extremely high, roughly 190% to 210% on a trailing or annualized basis in early 2026. This is a distribution rate, not a guaranteed return or a true earned yield. It is the cash CONY pays out relative to its (declined) share price, funded by option premium and, in many recent payments, by returning your own capital. A recent distribution was estimated at about 95% return of capital and only about 5% income, so the eye-catching percentage does not mean you are earning that on your money., and launched in August 14, 2023.
What is CONY?
CONY is a YieldMax single-stock option-income ETF that sells call options on Coinbase (COIN) to generate very large, frequent cash distributions, with a headline distribution rate that has run well above 100% annualized. That number is a distribution rate, not a guaranteed return, and a large share of recent payouts has been return of capital rather than earned income. The strategy caps your upside when COIN rallies, still exposes you to most of COIN's declines, and the heavy payouts tend to erode the fund's net asset value, so CONY's total return can fall far short of simply owning COIN. Its expense ratio is 1.04%. It is an income and trading tool, not a buy-and-hold proxy for Coinbase.
CONY is issued by YieldMax (advised by Tidal Investments / Tidal Trust II) and tracks synthetic covered-call income on Coinbase (COIN), so a single ticker gives you the whole basket of underlying holdings weighted by the index's methodology rather than by any active stock-picking.
CONY holdings: what's actually inside
CONY is weighted toward its largest constituents. As of early 2026, the top holdings are:
| Rank | Ticker | Company | % of CONY | |
|---|---|---|---|---|
| 1 | COIN | Coinbase Global | synthetic exposure via options |
The remaining holdings make up the balance of the fund, with weights tapering off below the top names. Because the index reconstitutes on a rolling basis, the roster stays current without active management. Each ticker above links to its individual stock guide in Walnut.
The bottom line on CONY
CONY turns Coinbase's high volatility into a stream of large weekly cash distributions by selling call options on COIN. The catch is that this is not free income: the strategy caps your gains when COIN rises, you still bear most of the downside, the big payouts can steadily erode net asset value, and much of what you receive can be return of your own capital rather than earned yield. Over its life CONY has at times delivered sharply lower total returns than COIN itself despite a headline yield north of 100%. It can make sense for an investor who explicitly wants current income from COIN's volatility and accepts giving up long-term appreciation, but it is the wrong tool if your goal is to track Coinbase's price or maximize total return. Walnut is informational, not investment advice.
More on CONY
Whether CONY is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is CONY a buy?
CONY yields Headline distribution rate is extremely high, roughly 190% to 210% on a trailing or annualized basis in early 2026. This is a distribution rate, not a guaranteed return or a true earned yield. It is the cash CONY pays out relative to its (declined) share price, funded by option premium and, in many recent payments, by returning your own capital. A recent distribution was estimated at about 95% return of capital and only about 5% income, so the eye-catching percentage does not mean you are earning that on your money. as of early 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see CONY dividend: yield and schedule.
Build a portfolio around CONY with Walnut
Use CONY as your core holding, then let Walnut's AI propose thematic satellites: AI infrastructure, dividend growth, clean energy, whatever you believe in. Connect your broker, build the basket in conversation, track it as one unit.
FAQ
What is CONY?
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CONY is the YieldMax COIN Option Income Strategy ETF, an actively managed single-stock option-income fund advised by Tidal Investments under Tidal Trust II. It launched in August 2023. Rather than owning Coinbase (COIN) directly, it uses a synthetic covered-call strategy: it builds synthetic long exposure to COIN with options and sells call options on COIN to collect premium, which funds large, frequent cash distributions.
What is CONY's expense ratio?
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CONY's total expense ratio is 1.04% as of early 2026. That is high compared with plain index ETFs and reflects the active, options-based management. The cost is a recurring drag on returns on top of the structural trade-offs of the covered-call strategy, so it should be weighed against what you actually keep after distributions and net asset value changes.
How does CONY generate its high yield?
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CONY sells (writes) call options on Coinbase (COIN), usually out-of-the-money, and collects the option premium. Because COIN is highly volatile, those premiums are large, and the fund pays them out as frequent (now generally weekly) cash distributions. The income comes from harvesting option premium on COIN's volatility, not from Coinbase's earnings or any interest the company pays.
Is CONY's distribution sustainable?
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The headline distribution rate, well above 100% annualized, is not a guaranteed or earned return and should be read with caution. A large share of recent distributions has been classified as return of capital, meaning the fund is partly handing back your own invested money rather than paying pure income. Heavy payouts combined with capped upside tend to erode the fund's net asset value over time, and the per-share distribution has been cut many times. The strategy can keep paying as long as COIN stays volatile, but the dollar amount and the underlying value can both decline, so do not treat the stated yield as stable, safe income.
Does CONY cap my upside?
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Yes. By selling call options on COIN, CONY agrees to give up gains above the option strike price in exchange for premium. When Coinbase rallies sharply, CONY keeps the premium but forfeits much of the appreciation above the strike, so it lags COIN in strong up moves. On the downside it still participates in most of COIN's losses, which is the central asymmetry of the covered-call approach.
Is CONY a good investment?
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It depends entirely on your goals and risk tolerance. CONY can suit an investor who specifically wants high current cash flow from Coinbase's volatility and accepts that this likely means giving up long-term price appreciation and risking net asset value erosion. It is a poor fit if your aim is to track COIN's price or maximize total return, because its total return has at times trailed COIN badly despite the huge headline yield. Walnut is informational, not investment advice; weigh the capped upside, NAV erosion, return-of-capital distributions, and 1.04% fee before investing.
How is CONY different from owning Coinbase (COIN) stock?
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Owning COIN gives you full, uncapped exposure to Coinbase's price, with no forced income. CONY instead chases income: it holds synthetic exposure to COIN through options, sells calls to generate premium, and pays out large distributions while capping your upside and charging 1.04%. As a result CONY and COIN can diverge sharply. CONY can pay you cash in a flat or choppy market but tends to underperform COIN in strong rallies and still falls in declines.
How often does CONY pay distributions and how large are they?
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CONY has moved to a weekly distribution schedule, paying recent amounts in the rough range of about $0.38 per share per week in early 2026, though the figure varies with market conditions and has changed frequently. Because the share price has declined substantially over time, those payments translate into a very high stated percentage rate, but a large portion has been return of capital, so the cash you receive is not all earned income.
How do I compare CONY to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. CONY's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to early 2026; verify current figures against YieldMax (advised by Tidal Investments / Tidal Trust II)'s fund page or your broker before investing.