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Roundhill's Bitcoin Covered Call ETF is advertising a 30 percent annual yield tied to Bitcoin's price action, despite holding no actual Bitcoin in its portfolio.
The structure is worth examining closely: a fund can carry the word "Bitcoin" in its name, promise income that sounds tied to the asset, and never touch a single satoshi.
How a Covered Call ETF Generates Yield Without Spot Exposure The mechanism here is options-based income generation.
A covered call strategy sells call options on an underlying asset — in this case Bitcoin — collecting the premium from buyers who want the right to purchase at a set price.
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