Roundhill Bitcoin Covered Call Strategy ETF (YBTC) Declares July Distribution
Roundhill Investments has announced the July distribution for its Roundhill Bitcoin Covered Call Strategy ETF (YBTC). The ETF will distribute $2.062168 per share on July 31, 2024, with an ex-date of July 30, 2024. YBTC boasts an impressive distribution rate of 50.71% as of July 25, 2024, and a 30-Day SEC Yield of 5.78% as of June 30, 2024. The fund maintains a gross expense ratio of 0.95% and aims to make monthly distributions, although this is not guaranteed. Investors should note that distributions may exceed the fund's income and gains for the taxable year, with the most recent distribution estimated to be 100% return of capital.
Roundhill Investments ha annunciato la distribuzione di luglio per il suo Roundhill Bitcoin Covered Call Strategy ETF (YBTC). L'ETF distribuirà 2,062168 dollari per azione il 31 luglio 2024, con una data di ex del 30 luglio 2024. YBTC vanta un'impressionante percentuale di distribuzione del 50,71% al 25 luglio 2024 e un rendimenti SEC a 30 giorni del 5,78% al 30 giugno 2024. Il fondo mantiene un rapporto di spese lorde dello 0,95% e punta a effettuare distribuzioni mensili, anche se ciò non è garantito. Gli investitori devono considerare che le distribuzioni potrebbero superare il reddito e i guadagni del fondo per l'anno fiscale, con l'ultima distribuzione stimata come 100% ritorno di capitale.
Roundhill Investments ha anunciado la distribución de julio para su Roundhill Bitcoin Covered Call Strategy ETF (YBTC). El ETF distribuirá 2.062168 dólares por acción el 31 de julio de 2024, con una fecha de ex el 30 de julio de 2024. YBTC cuenta con una tasa de distribución impresionante del 50.71% hasta el 25 de julio de 2024 y un rendimiento SEC a 30 días del 5.78% hasta el 30 de junio de 2024. El fondo mantiene un índice de gastos brutos del 0.95% y tiene como objetivo realizar distribuciones mensuales, aunque esto no está garantizado. Los inversores deben tener en cuenta que las distribuciones pueden exceder los ingresos y ganancias del fondo para el año fiscal, con la distribución más reciente estimada como 100% retorno de capital.
라운드힐 투자(Roundhill Investments)는 라운드힐 비트코인 커버드 콜 전략 ETF (YBTC)의 7월 배당금 발표를 하였습니다. ETF는 2024년 7월 31일에 주당 2.062168 달러를 배당할 예정이며, 배당 기준일은 2024년 7월 30일입니다. YBTC는 2024년 7월 25일 기준으로 50.71%의 인상적인 배당률을 자랑하며, 2024년 6월 30일 기준으로 30일 SEC 수익률 5.78%를 기록하고 있습니다. 해당 펀드는 총 비용 비율 0.95%를 유지하며 매달 배당을 목표로 하고 있지만 이는 보장되지 않습니다. 투자자들은 배당금이 해당 회계연도의 수익과 이익을 초과할 수 있으며, 최근 배당금은 100% 자본 반환으로 예상된다는 점을 명심해야 합니다.
Roundhill Investments a annoncé la distribution de juillet pour son ETF Roundhill Bitcoin Covered Call Strategy (YBTC). L'ETF distribuera 2,062168 dollars par action le 31 juillet 2024, avec une date de détachement au 30 juillet 2024. YBTC présente un taux de distribution impressionnant de 50,71% au 25 juillet 2024 et un rendement SEC à 30 jours de 5,78% au 30 juin 2024. Le fonds maintient un taux de frais brut de 0,95% et a pour objectif de réaliser des distributions mensuelles, bien que cela ne soit pas garanti. Les investisseurs doivent noter que les distributions peuvent dépasser les revenus et les gains du fonds pour l'année fiscale, la dernière distribution étant estimée à 100% de retour de capital.
Roundhill Investments hat die Juli-Ausschüttung für seinen Roundhill Bitcoin Covered Call Strategy ETF (YBTC) angekündigt. Der ETF wird am 31. Juli 2024 2,062168 Dollar pro Aktie ausschütten, mit einem Ex-Tag am 30. Juli 2024. YBTC weist zum 25. Juli 2024 eine beeindruckende Ausschüttungsquote von 50,71% auf sowie eine 30-Tage SEC-Rendite von 5,78% zum 30. Juni 2024. Der Fonds hat eine Bruttoausgabenquote von 0,95% und strebt monatliche Ausschüttungen an, was jedoch nicht garantiert ist. Anleger sollten beachten, dass die Ausschüttungen die Einkünfte und Gewinne des Fonds für das Steuerjahr übersteigen können, wobei die letzte Ausschüttung voraussichtlich 100% Rückzahlung des Kapitals beträgt.
- High distribution rate of 50.71% for YBTC
- Monthly distribution frequency
- Substantial distribution per share of $2.062168
- Distributions may exceed fund's income and gains
- 100% of recent distribution estimated as return of capital
- 0.95% gross expense ratio
The declaration of a
The fund's strategy of writing covered calls on Bitcoin futures can generate substantial income, especially in a volatile market. Yet, the disclosure that 100% of the distribution is estimated to be a return of capital is a red flag. This suggests the fund is essentially returning investors' own money rather than distributing profits. While this can be tax-efficient, it may not be sustainable long-term and could erode the fund's asset base if Bitcoin prices don't appreciate sufficiently.
The discrepancy between the high distribution rate and the much lower 30-Day SEC Yield of
The
In conclusion, while the high distribution rate may seem attractive, investors should approach with caution, understanding the return of capital nature of the distribution and the potential risks associated with Bitcoin's volatility and the fund's derivative strategy.
The Roundhill Bitcoin Covered Call Strategy ETF (YBTC) presents an intriguing investment vehicle that merges traditional finance with the cryptocurrency market. The fund's strategy of writing covered calls on Bitcoin futures is a sophisticated approach to generating income from a notoriously volatile asset.
The 50.71% distribution rate is eye-catching, but it's important to contextualize this within the broader crypto market. Bitcoin's price movements can be extreme, which allows for potentially high premiums on call options. However, this same volatility poses risks to the strategy, as rapid price increases could lead to called-away positions and missed upside.
The fund's approach may be particularly relevant in the current market environment. With Bitcoin having experienced significant price appreciation in recent months, many investors are seeking ways to maintain exposure while potentially hedging against downside risk or generating income. YBTC's strategy caters to this demand.
However, the 100% return of capital nature of the distribution raises questions about the strategy's effectiveness in actually profiting from Bitcoin's movements. It suggests that the fund may be struggling to generate real gains and is instead returning investors' principal. This could be due to challenges in timing the options market or unfavorable Bitcoin price movements.
Investors should also consider the broader implications of such products for the cryptocurrency ecosystem. The proliferation of Bitcoin-linked financial products like YBTC contributes to the asset's financialization and integration with traditional markets. This could potentially lead to increased institutional adoption but may also introduce new forms of market dynamics and risks to the Bitcoin ecosystem.
Fund Name | Ticker | Distribution Rate** | Distribution | Ex-Date | Pay Date | Distribution |
Roundhill Bitcoin | YBTC | 50.71 % | 7/30/24 | 7/31/24 | Monthly |
The Distribution Rate** (as of 7/25/2024) and the 30-Day SEC Yield*** (as of 6/30/24) for the Roundhill Bitcoin Covered Call Strategy ETF are
The Gross Expense Ratio for YBTC is
The performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Returns less than one year are not annualized. For the most recent standardized and month-end performance, please click here: YBTC.
The Funds currently expect, but do not guarantee, to make distributions on a monthly basis. Distributions may exceed the Funds' income and gains for the Funds' taxable year. Distributions in excess of the Funds' current and accumulated earnings and profits will be treated as a return of capital.
As of the most recent distributions by the funds, the distribution composition was estimated to be
**Distribution Rate: The annual rate an investor would receive if the most recent fund distribution remained the same going forward. The rate represents a single distribution from the fund and does not represent total return of the fund. The distribution rate is calculated by annualizing the most recent distribution and dividing by the most recent fund NAV.
**30-Day SEC Yield: Yield calculation that reflects the dividends and interest earned during the period after the deduction of the fund's expenses. It is also referred to as the "standardized yield".
About Roundhill Investments:
Founded in 2018, Roundhill Investments is an SEC-registered investment advisor focused on innovative exchange-traded funds. Roundhill's suite of ETFs offers unique and differentiated exposures across thematic equity, options income, and trading vehicles. Roundhill offers a depth of ETF knowledge and experience, as the team has collectively launched more than 100+ ETFs including several first-to-market products. To learn more about the company, please visit roundhillinvestments.com.
This material must be preceded or accompanied by a prospectus.
Click here for the YBTC prospectus.
All investing involves risk, including the risk of loss of principal. There is no guarantee the investment strategy will be successful. The funds faces numerous risks, including options risk, liquidity risk, market risk, cost of futures investment risk, clearing broker risk, commodity regulatory risk, futures contract risk, active management risk, active market risk, clearing broker risk, credit risk, derivatives risk, legislation and litigation risk, operational risk, trading issues risk, valuation risk and non-diversification risk. For a detailed list of fund risks see the prospectus.
Covered Call Strategy Risk. A covered call strategy involves writing (selling) covered call options in return for the receipt of premiums. The seller of the option gives up the opportunity to benefit from price increases in the underlying instrument above the exercise price of the options, but continues to bear the risk of underlying instrument price declines. The premiums received from the options may not be sufficient to offset any losses sustained from underlying instrument price declines, over time. As a result, the risks associated with writing covered call options may be similar to the risks associated with writing put options. Exchanges may suspend the trading of options during periods of abnormal market volatility. Suspension of trading may mean that an option seller is unable to sell options at a time that may be desirable or advantageous to do.
Flex Options Risk. The Fund will utilize FLEX Options issued and guaranteed for settlement by the Options Clearing Corporation (OCC). In the unlikely event that the OCC becomes insolvent or is otherwise unable to meet its settlement obligations, the Fund could suffer significant losses. Additionally, FLEX Options may be less liquid than standard options. In a less liquid market for the FLEX Options, the Fund may have difficulty closing out certain FLEX Options positions at desired times and prices. The values of FLEX Options do not increase or decrease at the same rate as the reference asset and may vary due to factors other than the price of reference asset.
Bitcoin Futures ETF Risks. The Fund will have significant exposure to the Bitcoin Futures ETF through its options positions that utilize the Bitcoin Futures ETF as the reference asset. Accordingly, the Fund will subject to the risks of the Bitcoin Futures ETF, set forth below.
Bitcoin Risk. Bitcoin is a relatively new innovation and the market for bitcoin is subject to rapid price swings, changes and uncertainty. The further development of the Bitcoin network and the acceptance and use of bitcoin are subject to a variety of factors that are difficult to evaluate. The slowing, stopping or reversing of the development of the Bitcoin network or the acceptance of bitcoin may adversely affect the price of bitcoin. Bitcoin is subject to the risk of fraud, theft, manipulation or security failures, operational or other problems that impact the digital asset trading venues on which bitcoin trades. The Bitcoin blockchain may contain flaws that can be exploited by hackers. A significant portion of bitcoin is held by a small number of holders sometimes referred to as "whales." Transactions of these holders may influence the price of bitcoin.
Digital Asset Industry Risk. The digital asset industry is a new, speculative, and still-developing industry that faces many risks. In this emerging environment, events that are not directly related to the security or utility of the Ethereum blockchain or the Bitcoin blockchain can nonetheless precipitate a significant decline in the price of ether and bitcoin.
Digital Asset Regulatory Risk. Digital asset markets in the
New Fund Risk. The fund is new and has a limited operating history.
Roundhill Financial Inc. serves as the investment advisor. The Funds are distributed by Foreside Fund Services, LLC which is not affiliated with Roundhill Financial Inc.,
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SOURCE Roundhill Investments
FAQ
What is the July 2024 distribution amount for Roundhill Bitcoin Covered Call Strategy ETF (YBTC)?
When is the ex-date and pay date for YBTC's July 2024 distribution?
What is the current distribution rate for YBTC as of July 25, 2024?
What is the 30-Day SEC Yield for YBTC as of June 30, 2024?
What is the gross expense ratio for the Roundhill Bitcoin Covered Call Strategy ETF (YBTC)?
