Roundhill Investments has made history by introducing the first covered call Bitcoin ETF in the U.S. market. The Roundhill Bitcoin Covered Call Strategy ETF, with the ticker “YBTC,” is being traded on the Cboe BZX exchange. This ETF offers a unique combination of high income potential and exposure to Bitcoin, satisfying the demand from investors for a covered call ETF with Bitcoin exposure. The fund aims to generate monthly income and is subject to a monthly upside cap. By utilizing a covered call strategy on Bitcoin ETFs, Roundhill aims to generate options income from the significant price volatility of Bitcoin. It should be noted that this ETF does not invest directly in Bitcoin but rather utilizes futures to generate yield through options. Currently, the fund has $2.5 million in assets under management, with the majority allocated to U.S. Treasury Bills. This innovative offering by Roundhill sets it apart from other recently approved Bitcoin ETFs, which invest directly in the cryptocurrency. It is worth mentioning that Grayscale, unrelated to Roundhill’s ETF, is also planning to launch its own covered call Bitcoin ETF, providing exposure to a spot Bitcoin exchange-traded fund.
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Roundhill introduces covered call Bitcoin ETF, a first for the U.S. market
