An application for a Bitcoin Covered Call ETF has been made by financial firm Roundhill, according to Eric Balchunas, a Bloomberg ETF analyst. In order to make money, this ETF will first hold Bitcoin futures ETFs before selling call and put options.
Through the use of options methods, the Bitcoin Covered Call ETF seeks to give investors a new opportunity to participate in the Bitcoin market while possibly lowering risk. The ETF can profit from premiums gained by selling call and put options, which can help offset any losses in the underlying Bitcoin futures ETFs.
This new ETF application is being released at a time when the bitcoin sector is still expanding and drawing attention from institutional and retail investors alike. The Bitcoin Covered Call ETF may gain popularity as new financial instruments that offer exposure to digital assets are created, appealing to investors who want to diversify their holdings and maybe lower the risk of making direct cryptocurrency investments.