VistaShares launches Treasury ETF with options-based Bitcoin exposure
The NYSE-listed BTYB allocates most of its assets to US Treasurys while using options strategies to provide weekly income and Bitcoin-linked exposure.
VistaShares has launched BTYB, an actively managed exchange-traded fund (ETF) listed on the New York Stock Exchange that allocates most of its assets to US Treasurys while using options strategies to provide weekly income and Bitcoin-linked price exposure.
According to the Tuesday announcement, the fund allocates about 80% of its portfolio to US Treasury securities and related instruments, with the remaining 20% tied to Bitcoin (BTC) price movements through a synthetic covered call strategy. Holdings data shows the fund’s Bitcoin-linked exposure comes from call options on BlackRock’s iShares Bitcoin Trust (IBIT).
In this particular context, a synthetic covered call strategy uses derivatives to create Bitcoin price exposure and sells call (buy) options against that exposure to generate income, rather than holding Bitcoin directly. As a result, BTYB does not track spot Bitcoin prices and limits upside potential in exchange for higher income from options premiums.
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