Roundhill Investments Announces YBTC and YETH Distributions for November 29, 2024

Rhea-AI Summary

Roundhill Investments has announced ETF distributions for its Bitcoin and Ethereum covered call strategy funds. The Roundhill Bitcoin Covered Call Strategy ETF (YBTC) will distribute $1.772934 per share with a distribution rate of 39.45% and a 30-Day SEC yield of 3.19%. The Roundhill Ether Covered Call Strategy ETF (YETH) will distribute $1.659723 per share with a distribution rate of 38.83% and a 30-Day SEC yield of 3.36%. Both funds have a gross expense ratio of 0.95% and aim for monthly distributions. The ex-date is set for 11/27/24 with payment on 11/29/24.

Positive

• High distribution rate of 39.45% for YBTC
• Monthly distribution schedule maintained
• Positive 30-Day SEC yield of 3.19%

Negative

• High gross expense ratio of 0.95%
• Distributions may exceed Funds' income and gains
• Current distribution rates may not be sustainable

Insights

Financial Analyst

The announced distributions for YBTC and YETH represent significant yield opportunities in the crypto-derivatives ETF space. With a 39.45% distribution rate for YBTC and 38.83% for YETH, these covered call strategies are generating substantial income in the current market environment. However, investors should note the stark difference between the distribution rates and the much lower 30-day SEC yields (3.19% and 3.36% respectively), which suggests a significant portion of distributions may represent return of capital rather than pure income. The 0.95% expense ratio is relatively high but not unusual for crypto-derivative products. The disparity between distribution rates and SEC yields warrants careful consideration of the sustainability of these payouts.

NEW YORK, Nov. 26, 2024 /PRNewswire/ -- Roundhill Investments, an ETF sponsor focused on innovative financial products, announced the following ETF distributions.

Fund Name	Ticker	Distribution Rate*	Distribution Per Share	30-Day SEC Yield**	Ex-Date	Pay Date
Roundhill Bitcoin Covered Call Strategy ETF	YBTC	39.45 %	$1.772934	3.19 %	11/27/24	11/29/24
Roundhill Ether Covered Call Strategy ETF	YETH	38.83 %	$1.659723	3.36 %	11/27/24	11/29/24

The Distribution Rate* (as of 11/22/2024) and the 30-Day SEC Yield** (as of 10/31/24) for the Roundhill Bitcoin Covered Call Strategy ETF are 39.45% and 3.19%, respectively.

The Distribution Rate* (as of 11/22/2024) and the 30-Day SEC Yield** (as of 10/31/24) for the Roundhill Ether Covered Call Strategy ETF are 38.83% and 3.36%, respectively.

The Gross Expense Ratio for YBTC and YETH is 0.95%.

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, YETH.

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. Distribution rates caused by unusually favorable market conditions may not be sustainable. Such conditions might not continue to exist and there should be no expectation that this performance will be repeated in the future. Please see the Supplemental Tax Information section of the webpage for more information on the distribution composition including the estimated return of capital.

*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 distinct 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. 
Click here for the YETH 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.

YBTC
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 U.S. exist in a state of regulatory uncertainty, and adverse legislative or regulatory developments could significantly harm the value of bitcoin futures contracts or the Bitcoin Futures ETF's share, such as by banning, restricting or imposing onerous conditions or prohibitions on the use of bitcoin, mining activity, digital wallets, the provision of services related to trading and custodying digital assets, the operation of the Bitcoin network, or the digital asset markets generally. Such occurrences could also impair the Bitcoin Futures ETF's ability to meet its investment objective pursuant to its investment strategy.

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., U.S. Bank, or any of their affiliates.

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SOURCE Roundhill Investments

FAQ

What is the distribution amount for YBTC ETF in November 2024?

The Roundhill Bitcoin Covered Call Strategy ETF (YBTC) will distribute $1.772934 per share on November 29, 2024.

What is YBTC's distribution rate as of November 2024?

YBTC's distribution rate is 39.45% as of November 22, 2024.

What is the expense ratio for YBTC ETF?

The gross expense ratio for YBTC is 0.95%.

When is the ex-date for YBTC's November 2024 distribution?

The ex-date for YBTC's distribution is November 27, 2024.