Investment company Roundhill has started the first covered call Bitcoin ETF in the United States. The market, as stated in a press release on January. Rewrite this text in simple words.
The ETF is named the Roundhill Bitcoin Covered Call Strategy ETF. It is bought and sold under the name “YBTC” on the Cboe BZX exchange.
Dave Mazza, who is an important person at Roundhill Investments, said:
“YBTC offers investors an attractive blend of high income potential and exposure to bitcoin … Investors have clamored for a covered call ETF with exposure to bitcoin and we are proud to be the first to bring such a product to the U.S. market.”
In the rest of the press release, YBTC lets you invest in Bitcoin by using a covered call strategy on Bitcoin exchange-traded funds. It tries to make money every month and has a limit on how much it can earn.
Roundhill said that Bitcoin doesn’t make money from operating or cash flow. But, because Bitcoin’s price keeps changing a lot, it’s possible to make money by selling options on it and giving that money to investors. This could provide a new way to invest in cryptocurrency.
Roundhill’s website also says that the fund is managed by someone who is actively making decisions about what to invest in. This means that investors don’t have to spend their time and money figuring out how to trade on their own. This way of managing is an important part of covered call ETFs.
The fund lets you invest in future things, not things that are available right now.
Bloomberg expert James Seyffart said the new YBTC from Roundhill uses futures instead of stocks to make money.
The Roundhill website says that YBTC is not a regular Bitcoin investment and does not directly invest in Bitcoin. This way of doing things makes YBTC different from other Bitcoin ETFs that were approved in January. 10, that includes companies like BlackRock and Fidelity.
YBTC currently has $2. 5 million of money being managed. The fund is mostly made up of 93. 8% of US assets Government IOUs of $2. 35 An additional 7. 35% is the ProShares Bitcoin Strategy ETF (BITO), which is worth $184,376. Roundhill has not said anything about the fact that the fund doesn’t have a lot of cryptocurrency shares right now.
Roundhill is not currently offering this, but Grayscale also wants to start its own Bitcoin ETF that involves covered calls. The fund will allow people to invest in a Bitcoin exchange-traded fund called GBTC ETF.