🔥🔥🔥 Fund group YieldMax files for Ether Option Strategy ETF ahead of #EtherETF launch
YieldMax, a fund group, has filed with the US Securities and Exchange Commission (SEC) to introduce an Ether Option Income Strategy ETF on the New York Stock Exchange Arca, as per a filing dated June 21, 2024. This move anticipates the forthcoming launch of spot Ether ETFs in the US.
The ETF will utilize a synthetic covered call strategy aimed at leveraging the volatility of underlying spot Ethereum ETFs to generate income. Holders of spot Ether ETFs can sell call options to earn additional income and manage risk.
According to the filing, the fund will not directly invest in Ethereum or any spot Ethereum ETF. It will be actively managed by Tidal Investments, with sub-advisory services provided by ZEGA Financial, an SEC-registered investment advisor specializing in derivatives-based investing.
YieldMax offers a variety of ETFs, each targeting specific underlying securities or assets. Employing a synthetic covered call strategy, these ETFs sell call option contracts on underlying securities to generate income from option premiums. Examples include ETFs focused on Tesla (TSLY), Apple (APLY), and Amazon (AMZY).
This recent filing follows YieldMax’s introduction of the #bitcoin☀️ Option Yield Strategy ETF (YBIT) last year, listed on NYSE Arca with an expense ratio of 0.99%.
Source - cryptobriefing.com
