- A synthetic covered call method will be used by YieldMax’s planned ETF.
- Neither Ethereum nor any future Spot ETH ETF will be considered for direct investment.
The prominent ETF issuer YieldMax has recently filed with the US SEC to launch an ETF based on the Ether Option Income Strategy. According to a filing made public on June 21, 2024, the ETF will be listed on the NYSE Arca. This strategic shift is also occurring at the same time as the possible US launch of Spot Ethereum ETFs.
A synthetic covered call method will be used by YieldMax’s planned ETF. Its purpose is to help investors benefit from the inherent volatility of Spot Ethereum ETFs. Not only that, but Spot Ethereum ETF investors may increase their revenue and better limit their risk exposure by selling call options.
No Direct Investment in Ethereum
Importantly, neither Ethereum nor any future Spot Ethereum ETF will be considered for direct investment by the fund. As an alternative, ZEGA Financial will provide sub-advisory services. While Tidal Investments takes the lead in administering the Ether Option ETF. To put things in perspective, ZEGA Financial is a CTA that focuses on trading derivatives and is registered with the US SEC.
In addition, YieldMax’s Bitcoin Option Yield Strategy ETF (YBIT) was launched last year, and this latest filing follows that. Additionally, the YBIT ETF has an expense ratio of 0.99% and is traded on NYSE Arca.
S-1 modifications were recently filed with the SEC by each of the eight applicants of Spot Ethereum ETF, according to the most current filings. Also, the fees and seed investments are now more clearly outlined thanks to these changes. As per SEC Chair Gary Gensler, the S-1 approval would be out by this summer.
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