How to Use Index Funds and ETFs for Passive Crypto Income

Key takeaways

• Crypto index funds and ETFs provide diversified exposure to digital assets, helping investors earn passive income without actively managing portfolios.

• Centralized and decentralized options exist, with ETFs available on stock exchanges and DeFi-native index tokens accessible via Web3 wallets.

• Income sources include asset appreciation, staking, DeFi yields and covered call strategies, depending on the fund’s structure — though not all funds support all these sources.

• Risks include market volatility, smart contract vulnerabilities and…