Bitwise Introduces Option Income ETF Suite Targeting Covered Calls On MSTR, COIN, And MARA
In Brief
IMST, ICOI, and IMRA aim to generate monthly income and maximize upside exposure to underlying stocks through daily active management and nimble, market-based adjustments.
Cryptocurrency asset manager Bitwise introduced three new actively managed exchange-traded funds (ETFs): the Bitwise MARA Option Income Strategy ETF (IMRA), the Bitwise COIN Option Income Strategy ETF (ICOI), and the Bitwise MSTR Option Income Strategy ETF (IMST).
The newly launched funds are structured to provide monthly income distributions while maintaining a degree of participation in the price movements of the associated stocks—namely MicroStrategy, Coinbase, and Marathon Digital Holdings. These strategies are actively managed on a daily basis by Jeff Park, Bitwise’s Head of Alpha Strategies, along with a team of three portfolio managers who focus exclusively on the dynamic developments within the cryptocurrency sector.
At the core of each fund is a covered call strategy, meaning the ETFs hold shares of the respective companies and simultaneously sell call options on those shares. This approach allows for income generation through option premiums while potentially capping upside gains.
Each of the three funds comes with a net expense ratio of 0.98%. However, ICOI and IMST also carry a gross expense ratio of 0.99%, though Bitwise has implemented a temporary fee waiver that will reduce this to the net level until March 25, 2027.
Bitwise’s ETF Strategy: Active Option Income Approach For Crypto-Linked Equity Exposure
Option income strategies typically involve maintaining a long position in a stock while simultaneously selling out-of-the-money call options on that same stock. The income is generated from the premiums collected by selling these options, which can then be distributed to investors on a monthly basis.
However, implementing this strategy effectively requires more than simply selling options at regular intervals. Portfolio managers must closely monitor a range of market factors—such as sector-specific news, capital inflows, regulatory updates, option pricing trends, and overall market sentiment—to ensure that each decision is informed and aligned with broader market dynamics.
Success in this space depends heavily on active, daily management by professionals with deep expertise in both the equity and cryptocurrency markets. Bitwise aims to offer this level of specialized oversight through its IMST, ICOI, and IMRA funds. These ETFs are intended for investors seeking thoughtful exposure to prominent crypto-related firms, alongside the potential benefit of monthly income through options strategies.
It’s important to note that investing in any of these funds does not equate to direct ownership of the underlying equities. The funds do not hold actual shares of COIN, MARA, or MSTR, and as such, investors in these ETFs are not entitled to dividends or shareholder rights associated with those individual companies.
Disclaimer
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
