YBIT

YBIT aims to generate monthly income while providing exposure to the performance of one or more US-listed ETFs with direct or synthetic exposure to Bitcoin. The fund strategy caps potential gains and exposes investors to downside risk. The fund utilizes a synthetic covered call strategy via standardized exchange-traded and FLEX options, which consists of three elements: （i） synthetic long exposure, （ii） covered call writing, and （iii） US Treasurys. The synthetic long exposure seeks to replicate the price movements of the underlying Bitcoin ETFs by purchasing and selling at-the-money call and put options with one- to six-month terms. To generate income, the fund writes call options with an expiration of one month or less and a strike price of approximately 5%-15% above the underlying ETF's current share price. This limits the funds participation in potential gains if the ETF shares increase in value above the cap. Lastly, the fund holds cash and short-term Treasury securities as collateral. Note: the fund does not invest directly in Bitcoin ETFs. Thus, investors are not entitled to any Bitcoin ETF dividends.