Key Insights:
- Bitwise’s new ETFs use covered calls to turn crypto stock volatility into monthly income.
- Jeff Park’s team actively manages IMST, ICOI, and IMRA for optimal performance.
- Funds target Strategy, Coinbase, and MARA with a 0.98% expense ratio.
Bitwise, a prominent crypto asset manager, announced the launch of three new exchange-traded funds on April 3, designed to generate monthly income by leveraging the volatility of crypto-related stocks.
Named IMST, ICOI, and IMRA, these funds target the performance of Strategy (formerly MicroStrategy) (MSTR), Coinbase (COIN), and MARA Holdings (MARA). Notably, the move highlights a fresh approach to harnessing the unpredictable swings of the cryptocurrency market.
Active Management Drives Strategy
Per the announcement, Jeff Park, Bitwise’s Head of Alpha Strategies, leads the daily management of these ETFs, supported by a team of three portfolio experts. Significantly, they employ a covered call strategy, selling out-of-the-money call options on the underlying stocks while retaining long positions.
For context, this method collects premiums from the options, which the funds distribute to investors each month. Moreover, the strategy hinges on active oversight rather than passive rules.
Park and his team analyze industry news, capital flows, regulatory shifts, and options pricing to balance income generation with stock performance participation. Consequently, the funds aim to offer investors exposure to influential crypto companies alongside steady payouts.
Bitwise New ETFs: Focus on Key Crypto Players
IMST tracks Strategy, a firm known for its significant Bitcoin holdings. Meanwhile, ICOI focuses on Coinbase, a leading cryptocurrency exchange, and IMRA targets MARA Holdings, a major player in digital asset mining.
Besides offering income, these ETFs provide a way to engage with the crypto sector through established equities. Per Bitwise’s announcement on X, each fund carries a net expense ratio of 0.98%, with ICOI and IMST featuring a slight fee waiver from their 0.99% gross ratio until March 2027.
Additionally, Foreside Fund Services, LLC, an unaffiliated distributor, handles the rollout of IMST, ICOI, and IMRA. Investors can access detailed prospectuses online for further information. The launch aligns with the crypto market’s reputation for sharp price movements, particularly in stocks tied to digital assets. Hence, Bitwise positions these ETFs as tools for investors seeking both income and limited equity gains.
