A new exchange-traded fund (ETF) is emerging, offering cryptocurrency bulls a unique exposure profile to industry leaders.
The YieldMax COIN Options Income Strategy ETF (CONY) debuted on NYSE Arca on August 15th. The fund aims to provide monthly income through a synthetic covered call strategy based on the stock price of cryptocurrency exchange Coinbase.
managed by Zega FinancialKnown for its derivatives-based funds, CONY joins a growing family of income-focused ETFs that track major players in the technology industry. Notable funds include Google, Amazon and Meta (formerly known as Facebook).I also added zega Netflix ETFs It was added to the mix earlier this month.
Big brand tech stocks are among the most easily recognizable and popular stocks. However, most companies are reinvesting profits into further expansion of their fast-growing businesses and refuse to pay dividends to investors.
That’s where ZEGA’s YieldMax fund comes in. Our value proposition is simple. The fund will provide ongoing cash payouts using the tech giant’s enormous growth potential. However, it may work that way only for some funds.
CONY expects to pay dividends every month, but does not guarantee it. its prospectus. The Fund’s performance is linked to changes in the price of the underlying shares, and adverse market conditions can result in large losses.
“Investors are looking at growth stocks going into 2023, but many of them aren’t paying dividends,” said Todd Rosenbluth, head of the firm. Research at VettaFicommented on the fund. “With the new ETFs, investors can earn income while gaining exposure to growth companies, potentially protecting the downside.”
The launch of CONY comes at a time when Coinbase is experiencing growing enthusiasm from market participants.
base case
Coinbase, the leading cryptocurrency exchange in the United States and the second largest cryptocurrency exchange in the world after Binance, is still a pillar of the emerging cryptocurrency industry. 2023 stocks have done well so far, with prices at doubled since the beginning of the year.
However, Coinbase faces regulatory risks. The Securities and Exchange Commission (SEC) has been on the hunt since it launched a new crackdown on cryptocurrencies following the collapse of former rival exchange FTX. Destroyed billions of dollars of investor capital. Earlier this year, federal agencies took action against Coinbase’s larger competitor, Binance.Also Ask Coinbase to stop trading It was used in nearly every cryptocurrency until it sued Coinbase in June.
But while the SEC’s crypto wars are heating up, Coinbase is winning battles in other areas of the regulatory environment.
Coinbase received approval from the Commodity Futures Trading Commission earlier this month to handle the buying and selling of Bitcoin and Ether futures by customers. This is an important feat. Coinbase is the first cryptocurrency native company Register as a futures trader. It may also add weight to industry arguments that some cryptocurrencies will be treated as commodities rather than securities, resulting in the need for lighter regulatory schemes.
It is unclear who will emerge victorious in the ongoing showdown over cryptocurrencies. However, regulatory decisions, along with trends in cryptocurrency adoption, will undoubtedly be a major driver of Coinbase’s price performance going forward.
As an actively managed fund, CONY charges an annual expense ratio of 99 basis points.
Coinbase is currently 70 dollar markCONY is currently trading About $18.
