Bitwise Asset Management launched three ETFs (IMST, ICOI, IMRA) targeting crypto stock volatility via covered call strategies. These ETFs sell call options on MicroStrategy, Coinbase, and Marathon while maintaining long positions. Managed by Jeff Park, the ETFs focus on generating monthly income and maximising asset appreciation, leveraging extensive market monitoring. Each ETF features a net expense ratio of 0.98%, with ICOI and IMST at 0.99% until 2027.
Bitwise Asset Management has introduced three option income strategy ETFs aimed at capitalising on the volatility of leading crypto stocks through meticulous daily management. These ETFs employ a covered call strategy, which involves selling call options on stocks such as MicroStrategy (NasdaqGS:MSTR), Coinbase (NasdaqGS:COIN), and Marathon Digital Holdings (NasdaqCM:MARA), while retaining long positions in these equities.
A covered call strategy allows investors to earn income by selling out-of-the-money call options on a security. This strategy provides regular distributions from option sales while allowing for potential growth in the price of the underlying asset. Bitwise CEO Hunter Horsley highlighted the unique opportunity presented by the historical volatility of cryptocurrencies for generating income.
Covered call options are synthetically structured in these ETFs; that is, the exposure to the underlying security’s price return is obtained through options rather than direct stock ownership. The ETFs, namely IMST, ICOI, and IMRA, will be managed by Jeff Park and his expert team, focusing on maximising both monthly income and upside potential through proactive management.
Jeff Park brings extensive experience in crypto and institutional derivatives, having worked with Corbin Capital, Harvard Management Company, and Morgan Stanley. His objective is to generate monthly income for investors while optimising participation in the underlying stock appreciation by thoughtfully selling call options. Park underscores the importance of monitoring various market dynamics, such as regulatory updates and options pricing, to effectively apply this strategy.
The ETFs will provide monthly income distributions with a net expense ratio of 0.98%. For ICOI and IMST, the gross expense ratio is 0.99%, including a fee waiver that extends until March 25, 2027. Since its inception in 2017, Bitwise has established itself as a leader in crypto investment education and products, supporting a multitude of investment professionals seeking exposure to bitcoin and other digital assets.
