Bitwise Unveils a New Suite of Option Income ETFs Designed for Targeting Covered Calls on MSTR, COIN, and MARA
In Brief
Through daily active management and agile adjustments based on market conditions, IMST, ICOI, and IMRA seek to deliver regular monthly income while boosting exposure to the stocks involved.
Cryptocurrency asset manager Bitwise The firm has rolled out three actively managed exchange-traded funds: the Bitwise MARA Option Income Strategy ETF (IMRA), the Bitwise COIN Option Income Strategy ETF (ICOI), and the Bitwise MSTR Option Income Strategy ETF (IMST).
These freshly launched funds are designed to provide monthly income payouts while allowing investors to benefit from the price fluctuations of key stocks, primarily related to the companies involved. MicroStrategy , Coinbase The core strategy of each fund revolves around covered calls, meaning they hold shares of the respective firms while simultaneously writing call options on those shares. This method helps generate income through premiums from options but might limit potential upside gains.
Each of the three offerings has a net expense ratio set at 0.98%. Notably, ICOI and IMST also feature a gross expense ratio of 0.99%, although Bitwise has instituted a temporary fee waiver that brings this down to the net rate until March 25, 2027.
The three funds represent an active approach to income generation through options trading.
Option income strategies typically involve taking a long position in an asset while simultaneously writing out-of-the-money call options on it. The income generated from this strategy comes from the premiums accrued through option sales, which can subsequently be distributed to investors on a monthly basis.
However, effectively executing this strategy requires much more than selling options at set intervals. Fund managers must meticulously observe various market factors, including sector developments, capital inflow patterns, regulatory changes, trends in option pricing, and overall market sentiment to ensure that each decision aligns with current dynamics.
Success in the realm of option income ETFs hinges on hands-on, daily management executed by specialists knowledgeable in both equity markets and the crypto landscape.
To provide this specialized oversight, the IMST, ICOI, and IMRA funds have been developed. These ETFs are tailored for investors seeking educated exposure to key crypto-related companies, while simultaneously enjoying the prospect of monthly returns via options strategies. Bitwise It's crucial to understand that investing in these funds doesn't equate to owning shares in the companies themselves. The ETFs do not actually hold shares of COIN, MARA, or MSTR, meaning investors in these funds won't receive dividends or shareholder privileges linked to those specific firms.
Keep in mind that the information shared here isn't intended as legal, tax, investment, financial, or any other kind of advice. Always invest only what you can afford to lose and, if in doubt, consult with a financial advisor. For more details, refer to the terms and conditions as well as the help and support sections provided by the issuer or advertiser. MetaversePost is dedicated to delivering accurate and impartial reporting, but market conditions can change unexpectedly.
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Airdrops Calendar Hot Projects Alisa, a passionate journalist at Cryptocurrencylistings, specializes in areas such as cryptocurrency, zero-knowledge proofs, investments, and the expansive Web3 sphere. With a sharp focus on emerging trends and technologies, she offers insightful coverage to keep readers informed and engaged in the fast-evolving digital finance landscape.