YBTC Still Has A Mammoth Yield Of 55%, But Risks Remain
Source: SeekingAlpha
2025-03-06 04:34:21 ET
Summary
- Roundhill Bitcoin Covered Call Strategy ETF offers a high yield of nearly 55% with weekly distributions, but underperforms Bitcoin due to its capped upside and complex options strategy.
- The fund's distributions are primarily return-of-capital, making it tax-efficient but volatile, with income dependent on Bitcoin's volatility.
- Compared to MAXI, YBTC's capped upside limits its potential, making it less attractive despite its higher yield and frequent payouts.
- Aggressive investors might consider a small allocation in YBTC, but conservative investors should avoid it; I rate YBTC a hold.
Introduction
Recently, I covered a Bitcoin ( BTC-USD ) income fund called MAXI. After that article, I began to hear about other Bitcoin income ETFs, and in particular the Roundhill Bitcoin Covered Call Strategy ETF (YBTC) came up several times....
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YBTC Still Has A Mammoth Yield Of 55%, But Risks Remain
Simplify Bitcoin Strategy PLUS Income ETF
NASDAQ: MAXI
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