YieldMax Files Application For Bitcoin Income Strategy ETF

YieldMax seeks SEC approval for YBIT ETF, employing a synthetic covered call strategy to generate income without direct exposure to Bitcoin’s market price.

The US Securities and Exchange Commission (SEC) has been formally petitioned by financial firm YieldMax to provide permission for the launch of YBIT, an exchange-traded fund (ETF) that will be centered around a Bitcoin Options Income strategy.

YieldMax’s request might result in its listing on the New York Stock Exchange by roughly April 10, 2024, if approved.

YieldMax proposes in their application to establish a fund that offers a means of indirectly profiting from the price fluctuations of certain exchange-traded products (ETPs) related to Bitcoin that are listed in the US and provides immediate income.

According to blockchain journalist Colin Wu, YieldMax is putting up a proposal for an exchange-traded fund (ETF) that is based on spot Bitcoin ETFs and employs a synthetic covered call strategy.

The Fund does not invest in Bitcoin or any other virtual currency directly. Additionally, it doesn’t make investments in financial contracts that depend on how well Bitcoin or other digital assets perform.

The Fund doesn’t intend to have a direct impact on Bitcoin’s current market price. Investors should look into options outside of this Fund if they wish to invest primarily in the price of bitcoin.

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