Simplify Asset Management has launched the Simplify Bitcoin Strategy PLUS Income ETF (NASDAQ: MAXI).
The firm writes that MAXI is the first ETF designed to provide investors not only with exposure to bitcoin but also with the potential to generate income by selling short-dated put or call spreads on the most liquid global equity indices. The fund targets 100 per cent exposure to bitcoin by investing in the front-month CME futures contract, while on the income side a sophisticated option-writing algorithm dynamically selects option type, underlier, and strikes in an attempt to generate attractive risk-adjusted returns. A second level of risk controls then seeks to mitigate tail risks associated with option selling.
“We’re very excited to be launching MAXI, providing investors for the first time with a capital efficient way to simultaneously gain exposure to bitcoin while potentially adding significant income to a portfolio,” says Paul Kim, CEO & Cofounder of Simplify.
“Whatever directional call an investor may want to make on bitcoin, MAXI can play a key role, as the Fund’s income component can help add to returns on the upside while also acting as a downside hedge by virtue of the ‘padding’ such income may deliver during potential drawdowns for bitcoin,” says Paul.
MAXI is listed on the Nasdaq and has a gross expense ratio of 0.97 per cent. The Fund is the second bitcoin-related offering in the Simplify ETF line-up, joining the Simplify US Equity PLUS GBTC ETF (SPBC), which targets a 100 per cent investment in US equities with a simultaneous 10 per cent exposure to bitcoin via the Grayscale Bitcoin Trust (GBTC).