Cboe introduces new Bitcoin ETF BuyWrite indices to manage volatility and generate income

From Yahoo Finance: 2025-06-09 19:15:00

Cboe Global Markets Inc. (CBOE) introduced new spot Bitcoin ETF BuyWrite indices to generate income from cryptocurrency exposure while managing volatility. The BXGBTCA index delivered a 25.3% annualized return compared to a loss of 10.6% for the GBTC benchmark from November 2024 through April 2025. Volatility was reduced to 39.7% versus 50.7% for GBTC. The covered call approach generated monthly option premiums averaging 5.5%. The BXGBTCT index recorded a 9.2% annualized loss with 53.7% volatility, with maximum drawdowns reaching 29.2%. Monthly option yields for the BXGBTCA strategy peaked at around 7% in January 2025, while BXGBTCT yields reached just under 2%. Cboe positioned the indices as tools for navigating cryptocurrency volatility while seeking income through covered call premiums. The launch follows growing demand for sophisticated crypto-linked investment solutions as digital asset markets continue to evolve. The indices build on existing derivatives-based cryptocurrency products as more investors seek structured digital asset exposure.



Read more at Yahoo Finance: Cboe Launches New Bitcoin ETF BuyWrite Indices