Roundhill introduces covered call Bitcoin ETF, a first for the U.S. market

Asset manager Roundhill has launched the first lined call Bitcoin ETF within the U.S. market, primarily primarily based on an announcement on Jan. 18.

The change-traded fund is critical because the Roundhill Bitcoin Lined Name Technique ETF. It trades below the ticker “YBTC” on the Cboe BZX change.

Dave Mazza, Chief Technique Officer at Roundhill Investments, said:

“YBTC provides traders a honest looking blend of high profits in all probability and publicity to bitcoin … Investors possess clamored for a lined call ETF with publicity to bitcoin and we’re proud to be the first to raise the kind of product to the U.S. market.”

Essentially based on the rest of the clicking release, YBTC provides publicity to Bitcoin by utilizing a lined call approach on Bitcoin ETFs. It objectives to originate monthly profits and is topic to a monthly upside cap.

Roundhill favorite that Bitcoin itself does no longer originate working profits or cash flows. Nonetheless, because Bitcoin has proven critical ticket volatility, it said that it will be ready to generate suggestions profits from its call promoting approach and plod that income to traders. This is in a position to perchance perchance additionally bear a gap in crypto investment opportunities.

Roundhill’s web plight extra explains that the fund is actively managed, that design that traders create no longer must utilize time and cash finishing up their have trading approach. This managed design is a key honest of lined call ETFs.

Fund provides in discovering entry to to futures, no longer plight

Bloomberg ETF analyst James Seyffart acknowledged the launch, noting that Roundhill’s YBTC “makes utilize of futures no longer plight but will generate yield by design of suggestions.”

Roundhill’s have web plight confirms that YBTC is no longer a plight Bitcoin ETF and does no longer make investments in Bitcoin without delay. This design sets YBTC except for various Bitcoin ETFs that obtained approval on Jan. 10, including these from BlackRock and Fidelity.

YBTC for the time being has $2.5 million of funds below management. A extra breakdown indicates that the fund consists 93.8% of U.S. Treasury Payments, valued at $2.35 million. One more 7.35% consists of ProShares’ Bitcoin Technique ETF (BITO), valued at honest $184,376. Roundhill has no longer commented on the proven fact that the fund looks to be to support small proportion of cryptocurrency-linked shares for the time being.

Unrelated to Roundhill’s present offering, Grayscale also objectives to launch its have lined call Bitcoin ETF. That fund will in its achieve provide publicity to a plight Bitcoin change-traded fund, specifically the firm’s newly authorized GBTC ETF.