YieldMax has filed an application to create an exchange-traded fund (ETF) focused on option contracts of MicroStrategy's stocks, one of the leading Bitcoin holders.
The document submitted to the U.S. Securities and Exchange Commission (SEC) outlines YieldMax's plans to launch the ETF Option Income Strategy in 2024, offering investors the opportunity to earn monthly income from MicroStrategy stocks. If approved, the ETF will be traded under the name MSTY and will use a "synthetic covered call" strategy based on a combination of call and put options.
This ETF will not include direct purchase of MicroStrategy stocks, but income will be generated through derivative contracts on these stocks. YieldMax manages 18 ETFs focused on the profitability of stocks of major technology companies, including Tesla, Apple, and Nvidia.
MicroStrategy, known as one of the largest Bitcoin holders in the world, recently gained about $2 billion in unrealized profit from investments in digital assets due to the rise in Bitcoin's value.
