Bitwise, a crypto investment firm, has introduced three active option income strategy exchange-traded funds (ETFs) designed to capitalize on the volatility of the cryptocurrency market. These ETFs will focus on the performance of companies such as MSTR, COIN, and MARA, which hold significant Bitcoin holdings. The aim of these ETFs is to generate monthly income for investors while participating in the performance of the selected firms.
Active option income ETFs are funds that generate additional income by selling covered calls and distributing the premium on sold options. The Bitwise ETFs, with the tickers $IMST, $ICOI, and $IMRA, will operate as active option income strategy funds, providing monthly returns to investors. The fund will allow investors to have exposure to companies like MicroStrategy (MSTR), Coinbase (COIN), and Marathon Digital Holdings (MARA), which have significant Bitcoin holdings.
Bitwise has appointed its Head of Alpha Strategies, Jeff Park, and three top members of its portfolio team to write the options for the ETFs. The team will maintain a long position on MSTR, COIN, and MARA while considering key fundamentals and option pricing. Bitwise has been active in launching crypto-related ETFs in recent weeks, including the OWNB ETF to track corporate Bitcoin holders and filing for ETFs related to Dogecoin and Ethereum staking.
In addition to launching ETFs, Bitwise has also made contributions to the Bitcoin community, donating $150,000 for open-source development. The firm has also ventured into decentralized finance (DeFi) by partnering with Maple for on-chain credit services. Overall, Bitwise’s foray into the world of ETFs and crypto-related investments signals its commitment to providing innovative financial products for investors looking to navigate the volatility of the cryptocurrency market.
Bitwise’s trio of ETFs is part of a larger trend in the crypto space, with more companies and investment firms exploring ways to offer exposure to digital assets through traditional financial instruments. As the cryptocurrency market continues to attract mainstream attention, ETFs like the ones launched by Bitwise provide investors with an alternative way to gain exposure to the industry without directly holding digital assets themselves.
With the launch of its active option income strategy ETFs, Bitwise aims to provide investors with a vehicle to navigate the inherent volatility of the cryptocurrency market while generating monthly income. By focusing on companies with significant Bitcoin holdings like MSTR, COIN, and MARA, Bitwise’s ETFs offer a unique opportunity for investors to participate in the performance of these firms while mitigating risk through the use of options strategies. As the crypto market continues to evolve, Bitwise’s ETFs represent a step towards bridging the gap between traditional finance and the digital asset space.
