The global fund managing firm X launched the Global X Bitcoin Covered Call ETF (BCCC), a financial product quoted in the US BZX Stock Exchange that seeks to provide indirect exposure to Bitcoin through ETP, while generating weekly income through the sale of purchase options.
Unlike traditional ETFs that directly buy Bitcoin or futures contracts (as explained in cryptopedia, cryptootic educational section), BCCC uses an active strategy known as Covered Call. This implies taking long positions in listed products that replicate the price of Bitcoin and, at the same time, sell purchase options on part of those holdings. In this way, the background It obtains weekly premiums that are distributed regularly among the shareholders.
Every week, the fund issues new purchase options seeking to capitalize on the accelerated loss of value that these options experience as they approach their expiration. This methodology allows The fund maximizes premium income compared to strategies based on longer expiration options.
It is expected that 75% of the charged premiums will be distributed weekly to investors, while the rest reinvested in the fund to reinforce their liquidative value. This positions the BCCC as an attractive option for those who seek to generate constant cash flow in the volatile context of the Bitcoin market, without assuming a total exposure to its appreciation or direct depreciation.
Bitcoin exposure is done syntheticly through combinations of long and short options on ETP. The company Recognize that this can generate slightly different yields with respect to the underlying products in short periods, although a long -term general convergence is expected.
A key aspect is that, although the background seeks to limit volatility when giving part of the upload potential through the options sold, It does not offer total protection against falls. The portfolio portion remains exposed to losses if the price of Bitcoin falls, although these could be partially compensated by the premiums obtained.
The ETF proposal is part of a recognition: Bitcoin continues to be an attractive asset for many investors, but its historical volatility can deter the most cautious. By combining partial exposure with systematic income generation, BCCC It seeks to offer an intermediate alternative for those who want to benefit from the growth of the ecosystem without assuming all their risk.
