Strategy & Methodology Overview
The tracker managed by Criptonite Asset Management, provides Bitcoin exposure and income through Covered Call strategy, holding BTC while selling Call options monthly. Targeting 1.5% monthly dividend (18% pa), while capturing most of the upside of Bitcoin.
Investors retain Bitcoin exposure through BTC held in the Fund. At the end of each month, the Fund Manager sells one-month call options backed by the Bitcoin held in the Fund, collects a premium from option sales, and passes that premium through to investors in the form of a monthly dividend.
The Fund aims to produce 1.5% of AUM in dividends per month (18% per annum).