According to Foresight News, Bloomberg ETF analyst Eric Balchunas has reported that investment firm Roundhill has submitted an application for a Bitcoin Covered Call ETF. This ETF will hold Bitcoin futures ETFs and then sell call and put options to generate returns.
The Bitcoin Covered Call ETF aims to provide investors with a new way to gain exposure to the cryptocurrency market while potentially reducing risk through the use of options strategies. By selling call and put options, the ETF can generate income from the premiums received, which can help offset potential losses in the underlying Bitcoin futures ETFs.
This new ETF application comes as the cryptocurrency market continues to grow and attract interest from both retail and institutional investors. As more investment products are developed to provide exposure to digital assets, the Bitcoin Covered Call ETF could become a popular choice for those looking to diversify their portfolios and potentially reduce risk associated with direct cryptocurrency investments.
