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- Roundhill Investments launched the Roundhill Ether Covered Call Strategy ETF (YETH) on Wednesday, which started trading on the Cboe BZX.
- The ETF seeks to offer exposure to ether (ETH-USD), the world’s second-largest cryptocurrency by market capitalization. The Ethereum blockchain serves as the basis for such emerging technologies as DeFi, NFTs, and decentralized applications.
- While the ETF doesn’t directly invest in ether (ETH-USD), it’s designed to generate potential monthly income as it provides exposure to the price movements of ether (subject to an upside cap). Historically, ether (ETH-USD) has exhibited slightly higher volatility compared with bitcoin (BTC-USD), which may translate into higher option premiums, Roundhill Investments said.
- “YETH offers investors an attractive blend of high income potential and exposure to ether,” said Dave Mazza, chief strategy officer at Roundhill Investments. “Investors have clamored for a covered call ETF with exposure to ether.”
- Ether (ETH-USD) fell 2.8% in Wednesday morning trading.
