A little-known Bitcoin ETF hit the U.S. market this month that is promising jaw-dropping annual returns to its investors.

The Roundhill Bitcoin Covered Call Strategy ETF (YBTC), launched on January 18, declared on Friday that its first distribution to investors would take place today in the amount of $1.33 per share. Based on that and the fund’s current net asset value, that equals a 33% annual distribution yield.

Yes, YBTC’s distribution yield is currently 33.19%,” Dave Mazza, Chief Strategy Officer of Roundhill, confirmed to Decrypt.

That’s a step above what even the riskier, now-defunct crypto firms like Terraform Labs and Celsius once promised their customers on crypto deposits. It’s also far higher than what the U.S. regulators—who were reluctant for years to approve regular Bitcoin spot ETFs—have ever considered a safe yield in the crypto space.

“YBTC seeks to generate monthly income through a covered call strategy on Bitcoin, which has historically offered significant option premiums due to the asset’s high volatility,” Mazza explained.

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Author: Andrew Throuvalas

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