Financial company YieldMax has formally requested approval from the United States Securities and Exchange Commission (SEC) to introduce an exchange-traded fund (ETF) named YBIT, focused on a Bitcoin Options Income strategy.
If given the green light, YieldMax’s request might lead to its inclusion on the New York Stock Exchange by approximately April 10, 2024.
In their application, YieldMax suggests creating a fund that generates immediate income while providing a way to indirectly benefit from the price movements of specific Bitcoin-related exchange-traded products (ETPs) listed in the United States.
As reported by blockchain journalist Colin Wu, YieldMax is proposing an ETF using a synthetic covered call strategy based on existing spot Bitcoin ETFs.
The Fund does not directly put money into Bitcoin or any other digital currencies. It also doesn’t invest in financial contracts tied to the performance of Bitcoin or similar digital assets.
The fund doesn’t aim to be directly involved with the current market price of bitcoin. If investors want to specifically invest in the price of bitcoin, they should explore options outside of this fund.
Also Read: Harvest Fund Applies for Spot Bitcoin ETF in Hong Kong
