According to the sources, Bitwise has taken a major leap by unveiling the first GameStop-only covered call ETF, aligning equity income with crypto exposure.
The new fund, known as the Bitwise GME Option Income Strategy ETF (IGME), also shows how the company is combining traditional investing with new ideas from the digital assets world.
A New Milestone in ETF Innovation
The covered call ETF has been popular with investors who want to earn steady income. Now, the US-based asset manager firm is doing something new by focusing this strategy on GameStop.
Jeff Park, Head of Alpha Strategies at asset manager firm, said that the ETF is carefully managed to take advantage of GameStop’s price swings and its new interest in Bitcoin.
The fund is designed to give investors monthly income while allowing them to invest in stocks like GameStop, which is known for high trading volumes and its shift from physical stores to a more digital business.
The asset manager firm thinks GameStop is a good match for this kind of investment strategy because of its internet popularity, steady business earnings, and involvement with Cryptocurrency.
GameStop’s Bitcoin Bet Strengthens the Narrative
GameStop’s decision to purchase 4,710 Bitcoin, which is said to be worth over $500 million at the time of acquisition, has caught a lot of attention in finance and crypto communities.
This move puts the company on the list of firms that are now using Bitcoin as part of their financial reserves. More than 79 public companies now collectively hold $57 billion in Bitcoin, and Bitwise believes that the interest in combining stocks and Crypto will continue to grow.
Bitwise Expands Its Covered Call ETF Suite
The launch of IGME is another addition to the companies fast-growing list of covered call ETF products. Other funds like IMST (based on MicroStrategy), ICOI (Coinbase), and IMRA (Marathon Digital Holdings) have already helped Bitwise become a well-known name in income-focused crypto investing.
Hunter Horsley, the CEO of US based Asset manager firm, said that their goal is to help investors earn money from the ups and downs of the Crypto market. He explained that the IGME funds use this idea with well-known stocks like GameStop, which is now part of the digital assets like Bitcoin.
Just like the earlier funds, IGME will use a synthetic options-based strategy instead of owning the underlying equity directly. This method helps to manage the risk more effectively while still aiming to earn strong returns from selling call premiums.
Monthly Income Distribution on the Horizon
Investors who are looking for steady income will be interested to know that IGME is planning to announce its first monthly distribution on July 24.
With an expense ratio of 0.98%, Bitwise sees this fund as an accessible yet sophisticated tool for retail and institutional investors. Financial analyst Greg Larsen from MarketsAlpha said that a covered call ETF, which is based on GameStop, is a new and interesting idea.
It mixes the excitement around the popular stocks with a steady way to earn income. He added that the asset manager company is using investors’ interest and smart planning in this fund.
The fund’s strategy is expected to attract people who want steady income and those interested in crypto, especially those investors who see GameStop as more than just a risky stock.
Conclusion
The IGME fund from Bitwise provides a new way to earn money. It combines the excitement of popular stocks like GameStop with a steady income plan.
Since GameStop is now involved in stock markets and crypto, these funds will give investors a new option to get regular payouts. As more people are showing interest in mixing stock and crypto, IGME might become a smart choice for those investors who are looking to earn income in today’s market.
FAQs
1. Who launched IGME?
Bitwise Asset Management
2. What is the main goal of IGME?
Earn monthly payouts by tapping into GME’s wild volatility.
3. What does IGME represent in the ETF market?
With IGME, the asset manager launches the first ETF focused only on GameStop’s volatility via covered calls.
4. Why did the company choose GameStop for a covered call ETF?
Its extreme volatility, meme stock status, and new Bitcoin holdings make it ideal for premium income generation.
5. How is crypto tied into this ETF?
GameStop’s $500M+ Bitcoin acquisition adds a digital asset layer, giving IGME indirect crypto exposure.
Glossary
IGME- Ticker symbol for GameStop Covered Call ETF.
Covered Call- An options strategy where call options are sold on owned stocks to earn income.
Meme Stock- Stocks made famous by the internet, not fundamentals.
Yield Strategy- When price moves don’t matter as much as monthly paydays.
Jeff Park- The strategy brain at the asset manager fir, betting big on structured risk.
Sources
Decrypt.co
Business Wire
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