Financial Firm YieldMax Applies for Bitcoin Options Income Strategy ETF
Financial firm YieldMax has submitted an application to the United States Securities and Exchange Commission (SEC) to launch a Bitcoin Options Income strategy ETF (YBIT). The proposed ETF aims to generate current income and provide indirect exposure to Bitcoin ETPs through a synthetic covered call strategy.
YieldMax Seeks SEC Approval for the ETF
If approved, YieldMax’s application expects the ETF to be listed on the New York Stock Exchange in April 2024. The fund would offer income generation and exposure to the price returns of select US-listed exchange-traded products (ETPs) linked to Bitcoin. YieldMax’s proposed synthetic covered call strategy ETF is based on other spot Bitcoin ETFs.
The Fund’s Operating Strategy
The ETF, referred to as “The Fund,” operates through a synthetic covered call strategy that generates income and indirect exposure to Bitcoin-related ETPs. It caps potential investment gains and is designed to produce higher income levels during periods of increased volatility in the underlying ETPs.
No Direct Investment in Bitcoin or Digital Assets
While the fund’s underlying ETPs invest directly or indirectly in Bitcoin, The Fund itself does not invest directly in Bitcoin, digital assets, or derivatives tracking their performance. It also avoids exposure to the current spot price of Bitcoin. Investors seeking direct exposure to Bitcoin’s price should consider alternative investments.
YieldMax’s Previous Bitcoin ETF Effort and Growing ETF Market
YieldMax previously filed for the Options Income Strategy ETF (MSTR), which focused on MicroStrategy derivatives. Meanwhile, spot Bitcoin ETFs continue to gain popularity, with consistent inflows indicating their growth. Charles Schwab and other financial players are also exploring the Bitcoin ETF market. Additionally, there are reports suggesting that Google may allow advertisements for spot Bitcoin ETFs on its search platform soon.
Hot Take: YieldMax Aims to Combine Income and Indirect Exposure to Bitcoin
With its application for the Bitcoin Options Income Strategy ETF, YieldMax seeks to introduce a fund that generates income and provides indirect exposure to Bitcoin through a synthetic covered call strategy. If approved, this ETF could bring new opportunities for investors looking to benefit from Bitcoin’s potential price returns while also generating current income.
By
By
By
By