Bringing you live news and features since 2006 

Simplify launches ETF combining income generation with bitcoin

RELATED TOPICS​

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).

Latest News

Some big forces moved further into ETF issuance this week, with Capital Group launching 12 new active/passive model portfolios, and..
ASYMmetric ETFs has announced the launch of two new funds, ASYMmetric Smart Income ETF (NYSE: MORE) and ASYMmetric Smart Alpha..
First Trust Advisors has announced the launch of a new actively managed ETF, the First Trust Multi-Strategy Alternative ETF (NYSE..
Allianz Investment Management LLC (AllianzIM), a wholly-owned subsidiary of Allianz Life Insurance Company of North America has announced the launch..

Related Articles

ETF
We are very pleased to open the voting for service providers (selected by nominations) and ETP issuers, selected by our data partners, Trackinsight, for the European ETF Express Awards, in...
Bitcoin
Osprey Funds’ founder and CEO, Greg King, has written an open letter to Barry Silbert, majority owner of Digital Currency Group which owns Grayscale, suggesting that he uses his powers...
Captain
Comparing multifactor ETFs to the popular Marvel Avengers series may seem a bit of a stretch but recent analysis from Morningstar suggests the investment strategies have more in common with...
Mackenzie
Canadian asset manager Mackenzie Investments, with CAD186.6 billion under management, has published its annual Mackenzie Investments Year-End ETF Report. ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by