Bitwise has launched three new ETFs aimed at investors looking for yield opportunities in leading Bitcoin treasury companies. These ETFs utilize a covered call strategy to take advantage of equity volatility while still benefiting from the potential upside of Bitcoin.
ETF Offerings
The new ETFs include:
- $IMST, tracking Strategy (formerly MicroStrategy, ticker: MSTR), holding 528,185 BTC.
- $IMRA, focused on MARA Holdings (MARA), a top Bitcoin miner with 47,600 BTC.
- $ICOI, offering exposure to Coinbase (COIN), which holds 9,480 BTC and plays a crucial role in institutional and retail Bitcoin adoption.
Active Options Overlay
Each ETF utilizes an actively managed options overlay strategy by writing out-of-the-money calls on the underlying equity while maintaining a long position. This approach aims to provide investors with monthly income distributions, especially beneficial in today’s high-volatility market, while still retaining significant exposure to Bitcoin-related companies.
New Opportunities for Capital Allocation
These ETFs offer corporate treasurers and institutional investors a way to indirectly invest in Bitcoin while generating yield, particularly for balance sheets that cannot directly hold BTC. With more companies integrating Bitcoin into their financial models, these equity-based strategies provide a new way to capitalize on Bitcoin's performance and market trajectory.
Bitcoin in Equity Strategy
Bitcoin is now becoming an integral part of public equity strategies, offering opportunities for yield generation and portfolio diversification. These ETFs signal a maturing market where Bitcoin can be actively managed and monetized through structured investment products.
Implications for Bitcoin Treasury Strategy
While these ETFs may not replace direct Bitcoin holdings, they can complement existing strategies or serve as a starting point for firms looking to navigate Bitcoin exposure within traditional risk frameworks. The market is evolving to recognize Bitcoin as more than just a store of value—it is now a dynamic asset that can be actively managed.
Disclaimer: This article was written on behalf of Bitcoin For Corporations and is for informational purposes only. It does not constitute investment advice or a solicitation to buy securities.
Frequently Asked Questions
Is it a good idea to open a Precious Metal IRA
You should be aware that precious metals cannot be covered by insurance. If you lose money in your investment, nothing can be done to recover it. This includes losing all your investments due to theft, fire, flood, etc.
Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These coins have been around for thousands and represent a real asset that can never be lost. These items are worth more today than they were when first produced.
When opening an IRA account, make sure you choose a reputable company offering competitive rates and high-quality products. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
If you decide to open an account, remember that you won't see any returns until after you retire. Do not forget about the future!
Can I keep physical gold in an IRA?
Gold is money and not just paper currency. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Today, investors use gold as part of a diversified portfolio because gold tends to do better during financial turmoil.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. While owning gold doesn't guarantee you'll make money investing in gold, there are several reasons why it may make sense to consider adding gold to your retirement portfolio.
One reason is that gold has historically performed better than other assets during periods of financial panic. The S&P 500 declined 21 percent during the same period. Gold prices increased nearly 100 per cent between August 2011 – early 2013. During these turbulent market times, gold was among few assets that outperformed the stocks.
The best thing about gold investing is the fact that there's virtually no counterparty risk. You still have your shares even if your stock portfolio falls. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.
Gold provides liquidity. This means that you can sell gold anytime, regardless of whether or not another buyer is available. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows one to take advantage short-term fluctuations within the gold price.
Is gold a good investment IRA option?
Anyone who is looking to save money can make gold an excellent investment. It is also an excellent way to diversify you portfolio. But gold is not all that it seems.
It has been used throughout history as currency and it is still a very popular method of payment. It's sometimes called “the world's oldest money”.
Gold is not created by governments, but it is extracted from the earth. It is very valuable, as it is rare and hard to create.
The supply and demand for gold determine the price of gold. The strength of the economy means people spend more, and so, there is less demand for gold. The value of gold rises as a consequence.
On the flipside, people may save cash rather than spend it when the economy slows. This results in more gold being produced, which drives down its value.
This is why both individuals as well as businesses can benefit from investing in gold. You will benefit from economic growth if you invest in gold.
In addition to earning interest on your investments, this will allow you to grow your wealth. If gold's value falls, you don't have to lose any of your investments.
Statistics
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's not exactly legal – WSJ
bbb.org
finance.yahoo.com
How To
The growing trend of gold IRAs
As investors look for ways to diversify their portfolios and protect themselves against inflation, the gold IRA trend is on the rise.
Gold IRA owners can now invest in physical gold bullion or bars. This IRA can be used to grow your wealth tax-free and is an alternative option to stocks and bonds.
Investors can manage their assets with a gold IRA without worrying about market volatility. They can use the gold IRA to protect themselves against inflation and other potential problems.
Investors also get the unique benefits of owning physical Gold, including its durability, portability, flexibility, and divisibility.
Additionally, the gold IRA has many benefits. It allows you to quickly transfer your gold ownership to your heirs. The IRS doesn't consider gold a commodity or currency.
Investors who seek financial stability and a safe haven are finding the gold IRA increasingly attractive.
—————————————————————————————————————————————————————————————-
By: Nick Ward
Title: Bitwise Introduces New ETFs for Yield-Seeking Investors in Bitcoin Treasury Stocks
Sourced From: bitcoinmagazine.com/bitcoin-for-corporations/bitwise-debuts-option-income-etfs-on-bitcoin-treasury-stocks-mstr-mara-coin
Published Date: Fri, 04 Apr 2025 10:23:24 +0000
