Global Fund Management Company X has launched Global X Bitcoin Cover Call ETF (BCCC), a financial product cited on the US BZX Stock Exchange that it intends to offer. Indirect exposure to Bitcoin via ETP, while generating weekly income Through the sale of purchase options.
Unlike traditional ETFs that directly purchase Bitcoin or futures contracts (as explained in the Encryption, Encryption Education section), BCCC is Cover Call. This means taking a long position in listed products that replicate the price of Bitcoin, and simultaneously selling purchase options with some of their holdings. In this way, the background Get weekly premiums distributed regularly between shareholders.
Each week, the fund issues new purchasing options that seek to take advantage of the reduced value that these options experience as they approach expiration dates. This methodology allows Funds maximize premium income Compare with strategies based on longer expiration options.
It is expected that 75% of the premiums charged will be distributed to investors every week, but the rest have been reinvested in the fund to enhance the liquid value. This positions the BCCC without assuming that it is fully exposed to valuations or direct depreciation for those seeking to generate constant cash flows in the volatile context of the Bitcoin market.
Bitcoin exposure is synthetically achieved through a combination of long and short ETP options. The company recognizes that, although a general long-term convergence is expected, this can produce slightly different yields for the underlying product.
An important aspect is that the background tries to limit volatility when giving some of the potential for uploads through the options sold, No complete protection against the waterfall is provided. The portfolio portion will remain exposed to losses if Bitcoin prices fall, but these may be partially covered by the premiums acquired.
The ETF proposal is part of the recognition. Bitcoin continues to be an attractive asset for many investors, but its historic volatility can block the most cautious ones. By combining partial exposure and systematic income generation, BCCC It seeks to offer intermediate alternatives to those who want to benefit from ecosystem growth without assuming all the risks.
(tagstotranslate)bitcoin(btc)
