8 months ago
Asset manager Roundhill has introduced the archetypal covered telephone Bitcoin ETF successful the U.S. market, according to a property merchandise connected Jan. 18.
The exchange-traded money is called the Roundhill Bitcoin Covered Call Strategy ETF. It trades nether the ticker “YBTC” connected the Cboe BZX exchange.
Dave Mazza, Chief Strategy Officer astatine Roundhill Investments, said:
“YBTC offers investors an charismatic blend of precocious income imaginable and vulnerability to bitcoin … Investors person clamored for a covered telephone ETF with vulnerability to bitcoin and we are arrogant to beryllium the archetypal to bring specified a merchandise to the U.S. market.”
According to the remainder of the property release, YBTC offers vulnerability to Bitcoin by employing a covered telephone strategy connected Bitcoin ETFs. It aims to nutrient monthly income and is taxable to a monthly upside cap.
Roundhill noted that Bitcoin itself does not nutrient operating profits oregon currency flows. However, due to the fact that Bitcoin has shown important terms volatility, it said that it whitethorn beryllium capable to make options income from its telephone selling strategy and walk that gross to investors. This could capable a spread successful crypto concern opportunities.
Roundhill’s website further explains that the money is actively managed, meaning that investors bash not request to walk clip and wealth carrying retired their ain trading strategy. This managed attack is simply a cardinal diagnostic of covered telephone ETFs.
Fund provides entree to futures, not spot
Bloomberg ETF expert James Seyffart acknowledged the launch, noting that Roundhill’s YBTC “uses futures not spot but volition make output via options.”
Roundhill’s ain website confirms that YBTC is not a spot Bitcoin ETF and does not put successful Bitcoin directly. This attack sets YBTC isolated from assorted Bitcoin ETFs that gained support connected Jan. 10, including those from BlackRock and Fidelity.
YBTC presently has $2.5 cardinal of funds nether management. A further breakdown indicates that the money consists 93.8% of U.S. Treasury Bills, valued astatine $2.35 million. Another 7.35% consists of ProShares’ Bitcoin Strategy ETF (BITO), valued astatine conscionable $184,376. Roundhill has not commented connected the information that the money seems to clasp tiny proportionality of cryptocurrency-related shares astatine present.
Unrelated to Roundhill’s existent offering, Grayscale besides aims to launch its ain covered telephone Bitcoin ETF. That money volition alternatively supply vulnerability to a spot Bitcoin exchange-traded fund, specifically the firm’s recently approved GBTC ETF.
The station Roundhill introduces covered telephone Bitcoin ETF, a archetypal for the U.S. market appeared archetypal connected CryptoSlate.
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