YieldMax Seeks US SEC Approval for Bitcoin Options Income Strategy ETF

With Bitcoin ETFs getting a strong response in the United States, investment players are now exploring new product lines around them. YieldMax has filed an application with the U.S. SEC for the launch of an ETF named YBIT, featuring a Bitcoin options income strategy. The ETF is set to be listed on the New York Stock Exchange, somewhere around April 10, 2024.

YieldMax Submits Application to U.S. SEC for Innovative ETF Strategy

In its application submitted to the U.S. Securities and Exchange Commission, YieldMax proposed that 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 Bitcoin, the popular cryptocurrency.

The ETF, referred to as “The Fund,” operates within the framework of a synthetic covered call strategy. This strategy is strategically designed to not only provide income but also offer indirect exposure to the share price returns of one or more underlying ETPs associated with BTC. Notably, the options strategy implemented by the Fund comes with a cap on potential investment gains.

This ETF employs a synthetic covered call strategy derived from other spot Bitcoin ETFs. Its objectives include generating current income and providing exposure to the performance of TBD spot Bitcoin ETFs. Additionally, the strategy aims to enhance returns during periods of heightened volatility in the underlying assets.

Crucially, it’s highlighted that The Fund will not engage in direct investment in Bitcoin or any other digital assets. Furthermore, it avoids direct investments in derivatives tracking the performance of Bitcoin or other digital assets. The Fund explicitly steers clear of seeking exposure to the current “spot” or cash price of Bitcoin.

The Bitcoin ETF Market Remains Hot

After nearly 20 days of launch the spot Bitcoin ETFs launched in the market continue to see strong inflows. In the latest development, US financial giant Charles Schwab is reportedly looking for an entry into the Bitcoin ETF market.

Interestingly, other market players are also aligning with these developments. As per reports, Google will start allowing advertisements for the spot BTC ETF on its search platform, by the month’s end.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.