YieldMax, a well-known ETF issuer, has recently submitted a filing with the US SEC to introduce an ETF centered on the Ether Option Income Strategy. The ETF is set to be listed on the NYSE Arca, as revealed by a public filing on June 21, 2024. This move comes at the same time as the potential US launch of Spot Ethereum ETFs.
YieldMax’s planned ETF will utilize a synthetic covered call method to allow investors to take advantage of the natural volatility of Spot Ethereum ETFs. This approach aims to help Spot Ethereum ETF investors increase their earnings and better manage their risk exposure by selling call options.
It’s important to note that the ETF will not directly invest in Ethereum or any future Spot Ethereum ETF. Instead, ZEGA Financial will provide sub-advisory services, while Tidal Investments will take the lead in managing the Ether Option ETF. ZEGA Financial is a CTA registered with the US SEC that specializes in trading derivatives.
YieldMax’s previous venture, the Bitcoin Option Yield Strategy ETF (YBIT), was launched last year and currently has an expense ratio of 0.99%, trading on NYSE Arca.
Recent S-1 filings with the SEC by the eight applicants of Spot Ethereum ETFs have resulted in more clarity on fees and seed investments. SEC Chair Gary Gensler has indicated that S-1 approval is expected to be granted by this summer.
In other crypto news today, US Spot Bitcoin ETFs have experienced a $545M outflow as investors exercise caution.
