YieldMax: Launches Bitcoin Options Yield Strategy ETF YBIT

2024-04-23 19:39:13

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ChainCatcher news, ETF issuer YieldMax has announced the launch of the YieldMax Bitcoin Options Income Strategy ETF (NYSE Arca: YBIT).

YBIT aims to generate current income by employing a synthetic covered call options strategy on one or more U.S.-listed ETFs that track Bitcoin. The ETF is actively managed by ZEGA Financial.

When selecting the underlying ETFs for trading options, ZEGA primarily considers two key factors: a preference for ETFs that directly hold physical or spot Bitcoin rather than those that indirectly reference Bitcoin futures; and the selection of underlying ETFs with sufficient options liquidity to support YBIT's trading activities.

It is noteworthy that YBIT does not directly invest in any Bitcoin ETFs, nor does it directly invest in Bitcoin or any other digital assets, let alone derivatives that track the performance of Bitcoin or other digital assets. Investors seeking direct exposure to Bitcoin prices should consider other investments outside of YBIT.

Reportedly, YBIT is the latest member of the YieldMax ETF product line. Like all YieldMax ETFs, YBIT aims to provide current income to investors.

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