Bitwise launches new Option Income ETFs on Bitcoin Treasury Stocks: MSTR, MARA, COIN
April 4, 2025
Bitwise has recently unveiled a trio of Exchange-Traded Funds (ETFs) that offer investors a chance to tap into the Bitcoin treasury market through a covered call strategy. This innovative approach aims to provide investors with a steady stream of income by leveraging the volatility of associated equities of companies deeply embedded in the Bitcoin space. The three ETFs introduced are $IMST, tracking Strategy (previously known as MicroStrategy, ticker: MSTR), which currently possesses a hefty 528,185 BTC; $IMRA, which centers on MARA Holdings (MARA), a notable Bitcoin mining entity holding 47,600 BTC in treasury, and $ICOI, providing exposure to Coinbase (COIN), a key player facilitating institutional and retail Bitcoin adoption and holding 9,480 BTC.
These ETFs make use of an actively managed options overlay strategy in which they write out-of-the-money calls on the underlying equity while concurrently maintaining a long position. This unique model is crafted to furnish monthly income distributions, a particularly attractive feature in today’s environment marked by pronounced volatility. Despite the absence of direct Bitcoin holdings within the funds, the underlying equities of these ETFs are intrinsically linked to the performance and trajectory of Bitcoin. Companies like Strategy and Marathon are noteworthy corporate entities boasting substantial BTC holdings, while Coinbase plays a pivotal role as fundamental infrastructure within the broader Bitcoin ecosystem.
For corporate treasurers and institutional investors looking to align their capital allocation with Bitcoin’s long-term value, these new ETFs offer an enticing opportunity. By leveraging the covered call strategy, investors can potentially secure regular income while maintaining access to the upside potential of Bitcoin-centric enterprises. This strategic investment approach provides an alternative means of tapping into the Bitcoin market indirectly through stocks of companies deeply embedded in the Bitcoin ecosystem.
Overall, Bitwise’s introduction of these innovative ETFs reflects a growing trend towards integrating Bitcoin and cryptocurrencies into traditional investment products. By offering investors exposure to Bitcoin-linked equities through a covered call strategy, these ETFs accommodate the evolving investment landscape characterized by heightened interest in digital assets. As the space continues to mature and attract institutional players, products like these ETFs play a crucial role in bridging conventional finance with the burgeoning world of cryptocurrencies, appealing to both seasoned investors seeking diversification and newcomers eager to explore the potential of digital assets.