Bitwise Launches New Crypto Options ETFs Targeting Volatility

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The cryptocurrency investment landscape is evolving rapidly, and Bitwise Asset Management is at the forefront with the launch of three innovative ETFs designed to capitalize on market volatility. These new funds—targeting stocks like MicroStrategy (MSTR), Coinbase (COIN), and Marathon Digital Holdings (MARA)—offer investors a structured, income-generating alternative to direct crypto ownership. With active management strategies centered around covered call options, these ETFs are tailored for those seeking consistent returns amid fluctuating digital asset markets.

This development marks a significant milestone in the convergence of traditional finance and crypto innovation, reflecting growing institutional appetite for regulated, risk-managed exposure to blockchain-related equities.

Introducing Bitwise’s Volatility-Focused ETFs

Bitwise has launched three actively managed exchange-traded funds: IMST, ICOI, and IMRA. Each targets a high-volatility crypto-correlated stock—MicroStrategy, Coinbase, and Marathon Digital, respectively—using a covered call strategy to generate monthly income. Rather than investing directly in digital assets, these ETFs provide exposure through equity positions and options trading.

Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, leads the initiative. Under his guidance, the funds maintain long positions in their target stocks while systematically writing covered calls. This approach allows the ETFs to collect premiums regularly, which are then distributed to shareholders as dividends.

“IMST, ICOI, and IMRA aim to distribute monthly income to investors while thoughtfully participating in MSTR, COIN, and MARA’s performance.”
— Jeff Park, Head of Alpha Strategies, Bitwise Asset Management

By focusing on companies deeply integrated into the Bitcoin ecosystem—such as MicroStrategy, which holds over 214,000 BTC—the ETFs offer indirect but strategic exposure to crypto price movements without the custody or regulatory complexities of holding digital assets directly.

👉 Discover how structured financial products are reshaping crypto investing

Why Covered Calls Make Sense in Volatile Markets

Volatility is often seen as a risk, but it can also be an opportunity—especially when leveraged through options strategies like covered calls. When a stock experiences large price swings, the associated options contracts typically command higher premiums due to increased implied volatility.

Bitwise’s strategy involves selling call options against its long stock positions. If the stock price remains below the strike price by expiration, the option expires worthless, and the fund keeps both the shares and the premium. Even if the stock rises above the strike and gets called away, the fund still benefits from capital appreciation up to that point—plus the collected premium.

This income-focused model is particularly appealing in sideways or moderately bullish markets, where double-digit annualized yield potential can be achieved through consistent option writing.

Moreover, because these are actively managed ETFs, portfolio managers can adjust strike prices, expiration dates, and position sizes based on market conditions—offering a level of flexibility not available in passive index funds.

Institutional Demand Driving Innovation

The launch of these ETFs underscores a broader trend: rising institutional demand for accessible, compliant ways to engage with the crypto economy. Traditional investors—pension funds, endowments, family offices—often face restrictions on direct crypto holdings due to custody concerns, tax implications, or regulatory ambiguity.

These new Bitwise offerings solve that problem by operating within the familiar framework of U.S.-listed equities and options markets. Regulated by Foreside Fund Services and traded on NYSE Arca, they meet stringent compliance standards while delivering exposure to key players in the Bitcoin ecosystem.

MicroStrategy’s aggressive Bitcoin acquisition strategy has already demonstrated the upside potential: since embracing Bitcoin as a treasury reserve asset in 2020, its stock value surged over 1,800% at peak levels. Similarly, Coinbase and Marathon have shown strong correlation with BTC price movements, making them ideal underlying assets for volatility-harvesting strategies.

As more institutions seek risk-adjusted returns without operational overhead, products like IMST, ICOI, and IMRA are likely to gain traction as core components of diversified portfolios.

👉 Learn how institutional-grade strategies are entering mainstream crypto investing

FAQ: Understanding Bitwise’s New Crypto Options ETFs

Q: What are covered call ETFs?
A: Covered call ETFs hold stocks and sell call options against them to generate income. The premiums collected from selling these options are distributed to investors as dividends, offering yield even in flat markets.

Q: Do these ETFs invest directly in Bitcoin or other cryptocurrencies?
A: No. These ETFs invest only in public equities—specifically MSTR, COIN, and MARA—and use options contracts on those stocks. Investors gain indirect exposure to crypto market dynamics without owning digital assets.

Q: How often are dividends paid?
A: The funds aim to distribute income monthly, providing a steady cash flow stream for income-seeking investors.

Q: Are these ETFs suitable for conservative investors?
A: While they aim to reduce risk through income generation, the underlying stocks are volatile. These funds are best suited for investors comfortable with equity market fluctuations who want to monetize volatility.

Q: How does this differ from a Bitcoin spot ETF?
A: A Bitcoin spot ETF holds actual Bitcoin. In contrast, these Bitwise ETFs hold company stocks linked to crypto and use options strategies to enhance returns—making them more about equity volatility than direct digital asset exposure.

Q: Who regulates these ETFs?
A: The funds are compliant with SEC regulations and overseen by Foreside Fund Services, ensuring transparency and investor protection under U.S. financial law.

Future Outlook: Bridging Traditional Finance and Crypto

Bitwise President Teddy Fusaro has emphasized the firm’s commitment to pioneering accessible crypto investment solutions. With these new ETFs, Bitwise is not just responding to market demand—it’s helping shape the future of digital asset integration into mainstream finance.

As regulatory clarity improves and investor education grows, products that combine traditional financial instruments with crypto market insights will become increasingly vital. The success of these volatility-targeting ETFs could pave the way for more sophisticated strategies—such as put writing, collar strategies, or multi-asset option overlays—in future offerings.

For investors looking to benefit from stock movements in leading crypto firms without taking on full directional risk, these funds represent a compelling evolution in investment design.

👉 Explore next-generation financial instruments powered by crypto market dynamics

Core Keywords

By merging time-tested options strategies with high-growth crypto-linked equities, Bitwise is redefining how both retail and institutional investors can participate in the digital economy—safely, regularly, and profitably.