The target of the Bitcoin Yield ETF employs a derivatives-based hedged call strategy to pay the monthly return to investors.
A bitcoin ETF offering monthly earnings was listed in Canada today. The Bitcoin Yield ETF target is active on the Toronto Stock Exchange under the symbol BTCY.B. Objective Investments employs a derivative-based hedged call strategy to pay investors an expected annual return of 8% to 10%.
Canadian investors can now receive monthly bitcoin income through a new exchange-traded fund (ETF) listed on the Toronto Stock Exchange (TSX), Yahoo Finance reported. The Bitcoin Yield ETF target employs a derivative-based hedged call strategy to pay investors a monthly income.
The fund was created by Purpose Investments, the asset manager that launched the first bitcoin exchange-traded fund (ETF) in North America. The pioneering product launched in February broke records in its opening week after trading $ 80 million in shares in the first hour and $ 200 million in the first day.
The company’s new bitcoin yield offering started trading today on the TSX under the symbol BTCY.B with a handling fee of 1.10%.
Purpose Investments said it could not guarantee the return paid per month due to volatility, but expects an annual return of between eight and 10 percent, according to the report. Income is classified as income in book-entry accounts.
When asked what type of investor the fund would appeal to, Purpose Investments Chief Operating Officer and Product Officer Vlad Tasevski told Yahoo Finance that investors should consider the ETF “if they want to earn income while holding it” as the generator of income. “short-term additional income on an asset that they believe has long-term potential.”
“Given the connection between underlying asset volatility and premiums, cryptocurrency hedged buying strategies offer unique exposure to a single asset class, providing investors with high returns without sacrificing significant price participation.” Tasevski added.