Roundhill Financial Proposes Covered Call-Covered Bitcoin ETF

Roundhill Financial, an advisory firm based in New York, has recently submitted a proposal for a covered call-covered bitcoin exchange-traded fund (ETF) in anticipation of the Securities and Exchange Commission’s (SEC) approval of bitcoin ETFs.

Overview of Roundhill Financial’s Proposal

The Roundhill ETF proposal aims to combine bitcoin futures ETFs with additional buy and sell options to generate income. This innovative approach is designed to provide investors with exposure to bitcoin while also generating additional returns through call and put options.

“Roundhill just filed for a Bitcoin Covered Call ETF, which will hold a bitcoin futures ETF and then write call and put options for income.” – Eric Balchunas

This move demonstrates Roundhill Financial’s ongoing interest in cryptocurrency-related offerings. In the past, the firm has shown interest in Ethereum futures ETFs alongside VanEck and Volatility Shares.

Roundhill Financial’s proposal comes at a time of increasing excitement in the cryptocurrency space as market participants eagerly await SEC approval for a bitcoin ETF. This announcement has generated significant attention and market activity.

SEC Chairman’s Confirmation and Impact on Bitcoin Prices

SEC Chairman Gary Gensler has confirmed that the agency is currently reviewing eight to ten applications for a spot bitcoin ETF. Each application undergoes a rigorous review process, raising expectations among stakeholders.

As a result, the news of potential SEC approval has had a positive impact on bitcoin prices, pushing them to reach $35,000 in recent days.

BlackRock Applies for Russell 2000 Small Cap ETF

In addition to Roundhill Financial’s proposal, investment management firm BlackRock has made an application for a small-cap ETF called the Russell 2000.

“The Boomer Candy continues as BlackRock drops a new order to buy the small-cap Russell 2000 and writes an ETF.” – Eric Balchunas

The Russell 2000 ETF aims to replicate the performance of the Russell 2000 index, providing investors with diversified exposure to smaller-cap stocks. This is in contrast to the large-cap-focused S&P 500.

BlackRock, with over $9 trillion in assets, has also proposed the iShares Spot Bitcoin ETF, which is already listed on the Depository Trust & Clearing Corporation (DTCC). Analysts consider this listing as a potential indication of approval by the SEC.

It is worth noting that BlackRock recently faced a $2.5 million fine from the SEC due to allegations of publishing misleading investment information. The fine was related to BlackRock’s investment in Aveyron Group, which was inaccurately described as a “diversified financial services” company.

For more news and updates, follow us on Google News.