According to Bloomberg, the Roundhill Bitcoin Covered Call Strategy ETF, an $8 trillion strategy, is set to begin trading on Thursday under the ticker YBTC. The actively managed fund tracks the performance of Bitcoin through the futures-backed ProShares Bitcoin Strategy ETF. YBTC is the first Bitcoin covered call strategy to launch in the ETF wrapper.
The fund aims to combine two opportunities: participating in a new asset class and providing potential for stable income generation. While YBTC may appeal to more cautious crypto-curious investors, its ability to create a "yield" for Bitcoin could also attract the pure-play crypto crowd, according to David Mazza, managing director at Roundhill Investments. Unlike Ether, which generates payouts through a mechanism called staking, Bitcoin does not have that process. Mazza explains that the ETF maintains exposure to Bitcoin while offering income potential, as it essentially generates a yield for the cryptocurrency.
