Bitwise has recently unveiled three new Exchange-Traded Funds (ETFs) targeting investors seeking income options with exposure to major Bitcoin treasury companies. These ETFs utilize a covered call strategy to leverage equity volatility while preserving the potential upside linked to Bitcoin.
Introducing the ETFs
The newly introduced ETFs are as follows:
- $IMST – Tracking Strategy (formerly MicroStrategy, ticker: MSTR) with a significant holding of 528,185 BTC.
- $IMRA – Focused on MARA Holdings (MARA), a leading Bitcoin miner holding 47,600 BTC in treasury.
- $ICOI – Offering exposure to Coinbase (COIN), which holds 9,480 BTC and acts as a crucial on-ramp for both institutional and retail Bitcoin adoption.
Strategy Overview
Each ETF incorporates an actively managed options overlay by writing out-of-the-money calls on the underlying equities while maintaining a long position. This strategy aims to provide investors with monthly income distributions, which are particularly appealing in today's environment of heightened volatility. At the same time, it allows for substantial exposure to companies linked to Bitcoin.
Capital Allocation for Bitcoin-Aligned Strategies
For corporate treasurers and institutional investors viewing Bitcoin as a strategic long-term asset, these new ETFs offer an attractive avenue to gain indirect exposure while generating yield, especially for balance sheets that cannot directly hold BTC. The emergence of equity-based strategies like these reflects a broader trend where more public companies are actively incorporating Bitcoin into their financial frameworks.
Implications for Bitcoin Treasury Strategies
The launch of these ETFs signals a shift where Bitcoin is no longer just a standalone asset but has become an integral part of public equity strategy, yield generation, and portfolio construction. While covered call structures may not suit all investors or treasuries, they indicate a maturing market that recognizes Bitcoin's potential for active management, structured approaches, and new monetization avenues.
These new ETFs are not intended to replace direct Bitcoin holdings on corporate balance sheets but rather to complement them or serve as an initial step for companies exploring ways to navigate Bitcoin while adhering to traditional risk, yield, and reporting requirements.
Disclaimer: The information provided in this article was composed on behalf of Bitcoin For Corporations and is solely for informational purposes. It should not be construed as an offer or solicitation to invest in securities.
This article was originally published on Bitcoin Magazine and authored by Nick Ward.
Frequently Asked Questions
What Precious Metals Can You Invest in for Retirement?
The best precious metal investments are gold and silver. They are both simple to purchase and sell, and they have been around for a long time. You should add them to your portfolio if you are looking to diversify.
Gold: Gold is one the oldest forms currency known to man. It is also extremely safe and stable. It's a great way to protect wealth in times of uncertainty.
Silver: Investors have always loved silver. It's a good choice for those who want to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It is very durable and resistant against corrosion, much like silver and gold. It is, however, more expensive than its competitors.
Rhodium. Rhodium is used as a catalyst. It is also used for jewelry making. It is also quite affordable compared with other types of precious metals.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It's also much more affordable. It's a popular choice for investors who want to add precious metals into their portfolios.
What are the benefits of having a gold IRA?
You can save money on retirement by putting your money into an Individual Retirement Account. You can withdraw it at any time, but it is tax-deferred. You have complete control over how much you take out each year. And there are many different types of IRAs. Some are better suited for people who want to save for college expenses. Some are for investors who seek higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at retirement. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This type of account might be a good choice if your goal is to retire early.
A gold IRA is similar to other IRAs because it allows you to invest money in various asset classes. Unlike a regular IRA you don't need to worry about taxes while you wait for your gains to be available. This makes gold IRA accounts a great choice for those who want their money to be invested, not spent.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. It means that you don’t have to remember to make deposits every month. Direct debits could be set up to ensure you don't miss a single payment.
Finally, gold remains one of the best investment options today. It is not tied to any country so its value tends stay steady. Even in times of economic turmoil, gold prices tend not to fluctuate. It is therefore a great choice for protecting your savings against inflation.
How much of your portfolio should you hold in precious metals
First, let's define precious metals to answer the question. Precious Metals are elements that have a very high relative value to other commodities. This makes them highly valuable for both investment and trading. Today, gold is the most commonly traded precious metal.
There are however many other types, including silver, and platinum. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is not affected by inflation or deflation.
All precious metals prices tend to rise with the overall market. But they don't always move in tandem with one another. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. This is because investors expect lower interest rates, making bonds less attractive investments.
However, when an economy is strong, the reverse effect occurs. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. These precious metals are rare and become more costly.
Diversifying across precious metals is a great way to maximize your investment returns. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
Is buying gold a good retirement plan?
Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.
The most popular form of investing in gold is through physical bullion bars. You can also invest in gold in other ways. It is best to research all options and make informed decisions based on your goals.
If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. Owning gold stocks should work well if you need cash flow from your investment.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
How does a gold IRA work?
The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.
You can purchase physical gold bullion coins anytime. You don't have a retirement date to invest in gold.
Owning gold as an IRA has the advantage of allowing you to keep it forever. When you die, your gold assets won't be subjected to taxes.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
To open a Gold IRA, you'll need to first set up an Individual Retirement Account (IRA). Once you've done that, you'll receive an IRA custody. This company acts like a middleman between the IRS and you.
Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual returns.
Once you've established your gold IRA, you'll be able to purchase gold bullion coins. Minimum deposit required is $1,000 A higher interest rate will be offered if you invest more.
You will pay taxes when you withdraw your gold from your IRA. You will be liable for income taxes and penalties if you take the entire amount.
However, if you only take out a small percentage, you may not have to pay taxes. There are some exceptions, though. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
It is best to not take out more than 50% annually of your total IRA assets. You'll be facing severe financial consequences if you do.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
bbb.org
investopedia.com
irs.gov
How To
Tips to Invest in Gold
Investing in Gold has become a very popular investment strategy. This is due to the many benefits of investing in gold. There are many options for investing in gold. Some people prefer to buy gold coins in physical form, while others prefer to invest in gold ETFs.
Before buying any type gold, it is important to think about these things.
- First, check to see if your country permits you to possess gold. If the answer is yes, you can go ahead. You might also consider buying gold in foreign countries.
- Secondly, you should know what kind of gold coin you want. You have options: you can choose from yellow gold, white or rose gold.
- You should also consider the price of gold. Start small and move up. It is important to diversify your portfolio whenever you purchase gold. Diversifying assets should include stocks, bonds real estate mutual funds and commodities.
- Lastly, you should never forget that gold prices change frequently. It is important to stay up-to-date with the latest trends.
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By: Nick Ward
Title: Bitwise Launches New ETFs for Bitcoin Treasury Stocks
Sourced From: bitcoinmagazine.com/bitcoin-for-corporations/bitwise-debuts-option-income-etfs-on-bitcoin-treasury-stocks-mstr-mara-coin
Published Date: Fri, 04 Apr 2025 10:23:24 +0000
