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Simplify launches an enhanced earnings bitcoin futures ETF

Simplify launches an enhanced earnings bitcoin futures ETF

October 3, 2022 | By James Lord, CFA | Category: Latest News

Based in New York Simplify asset management introduced the world’s first ETF offering exposure to bitcoin futures while simultaneously generating income through an overlay of options strategies.

Paul Kim, CEO and co-founder of Simplify Asset Management.

The Simplify Bitcoin Strategy PLUS Income ETF (MAXI US) was listed on Nasdaq with an expense ratio of 0.97%.

MAXI seeks 100% bitcoin exposure by investing in first-month bitcoin futures contracts traded on the Chicago Mercantile Exchange.

The fund’s options pocket is actively managed and consists of opportunistically selling short-term buy or sell spreads on highly liquid global equity indices.

Option spreads generally involve the simultaneous writing and buying of call or put options on a reference asset in order to generate income from the net option premium while capping potential losses if the Reference asset price moves significantly relative to the short option position.

Simplify uses its proprietary option writing algorithm to dynamically select option type, underlying and strike prices with the aim of generating attractive risk-adjusted returns.

Commenting on the new listing, Paul Kim, CEO and Co-Founder of Simplify Asset Management, said: “We are very pleased to launch MAXI, offering for the first time investors a capital-efficient way to simultaneously gain exposure to bitcoin while potentially adding significant income to a portfolio.

“Whatever directional call an investor may want to make on bitcoin, MAXI can play a key role, as the income component of the fund can help add to upside returns while also acting as a hedge on the downside. decline due to the “padding” this income can deliver during potential draws for bitcoin.

MAXI is the second bitcoin-linked offering in Simplify’s ETF lineup, joining the GBTC Simplified PLUS US Equity ETF (SPBC US) which seeks 100% investment in US stocks with a concurrent 10% exposure to bitcoin through the Grayscale Bitcoin Trust (GBTC).

Key words: Alternatives, ETFs and Index News, ETF Industry News, ETF Launch, High Income

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