The cryptocurrency market has long been defined by its extreme price swings—offering both high-risk pitfalls and high-reward opportunities. Recognizing this dynamic, Bitwise, one of the largest crypto-focused asset managers, has introduced three innovative option income strategy ETFs designed to help investors profit from ongoing market volatility.
These new exchange-traded funds—Bitwise MARA Option Income Strategy ETF (IMRA), Bitwise COIN Option Income Strategy ETF (ICOI), and Bitwise MSTR Option Income Strategy ETF (IMST)—are engineered to generate consistent monthly income while maintaining exposure to key players in the digital asset ecosystem.
👉 Discover how smart income strategies are reshaping crypto investing in 2025.
Targeted Exposure to Leading Crypto-Linked Stocks
Rather than investing directly in cryptocurrencies, these ETFs provide investors with exposure to publicly traded companies deeply involved in the crypto space:
- Coinbase Global (COIN) – A leading U.S.-based cryptocurrency exchange.
- MicroStrategy (MSTR) – Known for its massive Bitcoin holdings and corporate treasury strategy.
- Mara Holdings (MARA) – A U.S.-focused Bitcoin mining company with growing infrastructure.
By focusing on these equities, the ETFs offer a regulated, accessible way for traditional investors to gain indirect exposure to crypto market movements without holding digital assets directly.
Each fund maintains a long position in its respective underlying stock while simultaneously selling out-of-the-money call options. This strategy, known as a covered call, generates premium income that is distributed to shareholders on a monthly basis.
How the Option Income Strategy Works
The core mechanism behind these ETFs is relatively straightforward but powerful in volatile markets:
- The fund buys and holds shares of COIN, MSTR, or MARA.
- It then sells call options on those same shares, typically at strike prices above the current market value (out-of-the-money).
- In return, the fund collects premiums from option buyers—this becomes recurring income.
- If the stock price remains below the strike price at expiration, the option expires worthless, and the fund keeps both the premium and the shares.
- If the stock price rises above the strike price, the shares may be sold at a profit, though gains are capped.
This approach is particularly effective in sideways or moderately bullish markets where volatility is high but directional trends are unclear—conditions common in today’s evolving crypto landscape.
Actively Managed for Maximum Flexibility
Unlike passive index-tracking funds, these ETFs are actively managed by a dedicated team at Bitwise led by Jeff Park, Head of Alpha Strategies. The portfolio management team consists of four experienced professionals who continuously monitor:
- Crypto market sentiment
- Institutional capital flows
- Regulatory developments
- Option pricing inefficiencies
- Macroeconomic signals affecting tech and crypto equities
This active oversight allows the fund managers to adjust strike prices, expiration dates, and option coverage ratios based on real-time market data—optimizing income generation while managing downside risk.
“Crypto is famous for its volatility! These new ETFs aim to help investors capitalize on that volatility.”
— Bitwise Investment Team
The active management model ensures that investors aren’t just passively exposed to stock performance—they’re also benefiting from strategic decisions designed to enhance yield and navigate turbulent markets.
👉 Learn how professional-grade income strategies are transforming portfolio returns.
Key Benefits for Investors
1. Monthly Income Distribution
One of the most attractive features of these ETFs is their commitment to distributing income every month. For income-seeking investors—especially in a high-volatility environment—this provides predictable cash flow.
2. Exposure Without Direct Crypto Ownership
Many investors want exposure to crypto trends but remain cautious about custody, security, or regulatory uncertainty around digital assets. These ETFs solve that problem by offering indirect access through regulated U.S. equities.
3. Volatility as an Asset Class
Instead of fearing market swings, these funds treat volatility as a source of income. By leveraging options, they turn uncertainty into opportunity—a sophisticated strategy previously available mostly to institutional traders.
4. Transparency and Accessibility
Listed on major exchanges, these ETFs are fully transparent, SEC-compliant, and accessible through standard brokerage accounts—making them suitable for retail and institutional investors alike.
Risks and Important Considerations
While the income potential is compelling, Bitwise emphasizes that investors should carefully evaluate several risks before participating:
- Capped Upside: Because the funds sell call options, any significant rally in the underlying stock beyond the strike price results in limited gains.
- Market Downturns: If the stock price drops sharply, the income from options may not fully offset capital losses.
- No Direct Stock Ownership: Investors in the ETF do not own the underlying shares directly; they hold units in a pooled investment vehicle.
- Management Fees: As actively managed funds, they carry higher expense ratios than passive ETFs.
Bitwise advises thorough due diligence and encourages investors to align these products with broader financial goals and risk tolerance.
Bitwise’s Broader Vision in Crypto Investing
With over $5 billion in assets under management, Bitwise continues to be a pioneer in bringing institutional-grade crypto investment products to mainstream markets. Beyond these new option income ETFs, the firm has already launched a dual Bitcoin and Ethereum spot ETF and is pushing forward with filings for additional spot crypto ETFs—including proposals for XRP, Dogecoin, Aptos, and Solana.
The U.S. Securities and Exchange Commission (SEC) has acknowledged these submissions, fueling speculation that several could be approved in 2025—potentially expanding investor access to a wider range of digital assets through regulated channels.
👉 See what’s next in the evolution of crypto-based financial products.
Frequently Asked Questions (FAQ)
Q: What is an option income strategy ETF?
A: It’s an exchange-traded fund that generates income by selling call options on stocks it owns. The premiums collected from selling these options are distributed to investors, typically on a monthly basis.
Q: How do these ETFs benefit from crypto volatility?
A: Higher volatility increases the value of options premiums. By selling call options during volatile periods, the funds collect more income—turning market uncertainty into a revenue stream.
Q: Do I own COIN, MSTR, or MARA shares directly if I invest in these ETFs?
A: No. You own shares in the ETF, which holds the underlying stocks. You do not have direct ownership rights in the individual companies.
Q: Are these funds suitable for conservative investors?
A: They may appeal to moderate-risk investors seeking income, but they are not risk-free. The capped upside and exposure to stock price swings mean they work best as part of a diversified portfolio.
Q: Can I lose money investing in IMRA, ICOI, or IMST?
A: Yes. If the underlying stock prices fall significantly, capital losses can outweigh the income earned from options. As with any investment, there is no guarantee of returns.
Q: When are dividends paid out?
A: The funds aim to distribute income monthly, sourced from option premiums collected when contracts expire or are closed.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. The views expressed are based on publicly available information and analysis. Readers should conduct independent research and consult with a qualified financial advisor before making investment decisions.