From Yahoo Finance: 2025-06-11 18:01:00

A new ETF, Bitwise GME Option Income Strategy ETF (IGME), tied to GameStop Corp. (GME) launched, aiming to generate high yields through covered calls. Despite falling 2.1% in trading, IGME joins the T-REX 2x Long GME Daily Target ETF (GMEU) as the second ETF tied to the meme stock. Covered call funds like YieldMax TSLA and MSTR have been successful, amassing billions in assets. These funds offer monthly income streams but come with capped upside and downside risk. Despite their trade-offs, investors continue to invest, attracted by the big yields and simplicity of the strategy.

The GameStop ETF launch by Bitwise, known for its crypto-focused lineup, is linked to GameStop’s recent adoption of Bitcoin. Like MicroStrategy, GameStop is transitioning from a video game retailer to a meme stock with a crypto connection. Bitwise sees GameStop’s potential and volatility as compelling for a covered call strategy. Retail interest in GameStop has shifted to other stocks like Strategy and Palantir, but with high options premiums, GameStop may still have a future in the ETF world.



Read more at Yahoo Finance: GameStop Covered Call ETF Debuts Amid Meme Stock Resurgence