Roundhill Announces Game-Changing Ether ETF Launch

As a seasoned crypto investor with a strong background in financial derivatives and a keen interest in alternative investment strategies, I’m thrilled about the upcoming launch of the Roundhill Ether Covered Call Strategy ETF ($YETH | fes tba). The potential of this innovative product to revolutionize the investment landscape is not lost on me.


The pioneering Exchange-Traded Funds (ETFs) are poised to transform the investment world, bringing about a fresh wave of possibilities and advancements. Roundhill Investments is thrilled to unveil the Roundhill Ether Covered Call Strategy ETF ($YETH | future ticker symbol), scheduled for launch on August 14, 2024.

As a researcher studying innovative investment strategies, I’d like to introduce you to an extraordinary Exchange-Traded Fund (ETF). This forward-thinking ETF grants investors synthetic covered call exposure to Ethereum futures ETFs using Flex Options. In simpler terms, it allows us to earn income while simultaneously participating in the Ethereum market.

The Roundhill Ethereum Covered Call Strategy ETF, tentatively named $YETH, has been filed with the SEC. Its effective date is August 14, 2024. This ETF aims to provide synthetic covered call exposure to Ethereum futures through Flex Options. In simpler terms, it’s an investment fund that uses options to gain income by selling the right to sell Ethereum futures at a specific price while retaining the underlying asset. #ETH #BTC #BitcoinETFs— ETF Hearsay by Henry Jim (@ETFhearsay) June 2, 2024

“The Fund aims to achieve its investment objectives through the use of a synthetic covered call approach, which provides regular income and permits investment in Ether ETFs listed on American stock markets.”

The fund currently employs contracts linked to Ethereum Futures ETFs as its primary investment tool, with over 80% of its assets dedicated to these options. By combining call and put options, the Fund implements its strategy. For regulatory evaluations, the value of derivative contracts is determined by their notional value.

The fund earns revenue by offering call options on Ethereum Futures ETFs instead of purchasing ether outright or aiming for exposure to its current market value. Investors looking for a more direct connection to ether’s price fluctuations should explore other investment opportunities.

As a researcher studying this particular fund, I would describe its investment strategy as striking a harmonious balance between generating income and actively engaging in the ETF market. A key priority is adhering to regulatory requirements and managing risks. For those seeking direct exposure to ether prices, it’s recommended they explore alternative investment options.

As a crypto investor, I’m excited about Roundhill Investments introducing America’s first Bitcoin-covered call strategy ETF, YBTC, on January 22, 2024. Unlike other Bitcoin ETFs I’ve come across, YBTC doesn’t follow the price of Bitcoin itself but instead tracks a futures-based index. This ETF employs a unique covered call strategy: writing call options on the Bitcoin ETF to generate monthly income with minimal upside if Bitcoin’s price experiences significant growth.

Read More

2024-06-03 16:06