Roundhill Bitcoin Covered Call Strategy ETF

YBTC

Market cap $287M

Roundhill Bitcoin Covered Call Strategy ETF draws attention for its weekly distribution structure, currently exceeding 40% annualized. It achieves this by employing a synthetic covered call strategy on Bitcoin ETFs with short-term expirations. This, today for example, creates an upside cap slightly below 1% and a premium that varies at each roll depending on market volatility.

Roundhill Bitcoin Covered Call Strategy ETF offers high weekly income by using a synthetic covered call approach on Bitcoin exposure. YBTC's structure involves options on the iShares Bitcoin ETF, generating yield but not directly owning Bitcoin or Bitcoin ETFs. The ETF's high yield masks principal erosion and exposes investors to Bitcoin's volatility, resulting in wide swings and lower total returns than IBIT.

YBTC is an offering in the Bitcoin space that seeks to generate a weekly distribution for its investors. It generates this weekly distribution through writing options on ETFs and indexes that have exposure to BTC. The fund provides a massive distribution yield, but its relatively lower-yielding peer wins again on the total return front thanks to a more flexible strategy.

YBTC offers a unique weekly income strategy in the crypto space, boasting over a 40% distribution rate and low expense ratio among peers. Bitcoin's legitimacy is rising, with its market cap surpassing $2.2 trillion and institutional adoption growing, supporting long-term growth potential. YBTC's high distribution helps manage Bitcoin's volatility, enabling investors to build cash reserves for reinvestment and flexible portfolio strategies.

YBTC outperforms peers, capturing 80% of Bitcoin's upside and delivering a 40% yield, while maintaining stable NAV through disciplined distributions. Active management and flexible covered call strategies—mixing weekly and monthly options—enable the Fund to adapt to Bitcoin's volatility and maximize returns. Roundhill Bitcoin Covered Call Strategy ETF's performance is still closely tied to Bitcoin's direction; it softens losses in downturns but will decline if Bitcoin enters a bear market.

Weekly income ETFs are booming, with new funds leveraging 0DTE options strategies to generate high-yield, frequent distributions for passive income seekers. Roundhill, YieldMax, Rex Shares, and GraniteShares have all launched innovative ETFs offering weekly payouts, each with unique strategies and underlying assets. While yields are attractive—some exceeding 20% annually—these funds are new, so investors should monitor performance and understand the risks involved.

YETH will seek to pay weekly distributions starting in July; YBTC and YETH will now trade ex-dividend each Wednesday and pay on Thursday.  NEW YORK , June 16, 2025 /PRNewswire/ -- Roundhill Investments, an ETF sponsor focused on innovative financial products, announced today that the Roundhill Ether Covered Call Strategy ETF (YETH) will transition from monthly to weekly distributions.

Benchmarking YBTC against YBIT shows YBTC has lower payouts but potentially better growth, making it suitable for investors seeking higher bitcoin exposure. YBIT offers quicker de-risking from bitcoin, making it ideal for those needing income and downside comfort, despite underperformance in up markets. YBTC outperforms in sideways to upward markets, while YBIT holds better in downtrends, highlighting their different risk-reward profiles.

Roundhill Bitcoin Covered Call Strategy ETF offers a high yield of nearly 55% with weekly distributions, but underperforms Bitcoin due to its capped upside and complex options strategy. The fund's distributions are primarily return-of-capital, making it tax-efficient but volatile, with income dependent on Bitcoin's volatility. Compared to MAXI, YBTC's capped upside limits its potential, making it less attractive despite its higher yield and frequent payouts.

Roundhill Investments announced the launch of the first five of its new WeeklyPay ETF suite on the Cboe Exchange on Wednesday, February 19, 2025. The funds offer weekly distributions with leveraged exposure to specific single stocks, expanding the income playing field.