YieldMax Seeks US SEC Approval for Bitcoin Options Income Strategy ETF
With the strong reception of Bitcoin ETFs in the United States, research into innovative product offerings is also on the rise. YieldMax has filed with the US SEC to introduce an ETF called YBIT, which includes its Bitcoin option income strategy. The ETF is scheduled to list on the New York Stock Exchange around April 10, 2024.
YieldMax Filed with US SEC for Innovative ETF Strategy
In its filing with the U.S. Securities and Exchange Commission, YieldMax said the fund aims to generate current income while offering indirect exposure to the price returns of selected U.S.-listed exchange-traded products (ETPs) seeking exposure to the popular cryptocurrency Bitcoin. he suggested. .
The ETF referred to as the “Fund” operates within the framework of a synthetic covered call strategy. This strategy is strategically designed to provide not only income but also indirect exposure to the share price returns of one or more underlying ETPs associated with BTC. In particular, the options strategy implemented by the Fund imposes a cap on potential investment gains.
This ETF uses a synthetic covered call strategy derived from other spot Bitcoin ETFs. Its goals include generating current income and gaining access to the performance of TBD spot Bitcoin ETFs. Additionally, the strategy aims to increase returns during periods of increased volatility in the underlying assets.
Most importantly, it is emphasized that the Fund will not invest directly in Bitcoin or any other digital asset. It also avoids direct investments in derivatives that track the performance of Bitcoin or other digital assets. The fund explicitly avoids exposure to Bitcoin’s current “spot” or cash price.
Bitcoin ETF Market Remains Hot
Nearly 20 days after launch, spot Bitcoin ETFs continue to see strong inflows. In the latest development, US financial giant Charles Schwab is reportedly seeking entry into the Bitcoin ETF market.
Interestingly, other market players are also participating in these developments. According to reports, Google will start allowing spot BTC ETF ads on its search platform by the end of the month.
✓ Share:
Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
#YieldMax #Seeks #SEC #Approval #Bitcoin #Options #Income #Strategy #ETF
