COIN

Spot

<a href="https://bitcoinworld.co.in/yieldmax-introduces-fiat-etf-to-hedge-against-coinbase/" title="YieldMax Introduces FIAT ETF To Hedge Against Coinbase" rel="nofollow"></a>
YieldMax launches FIAT ETF on NYSE Arca, offering inverse exposure to Coinbase via a synthetic covered put strategy for income generation. 
<ul> 
 <li style="font-weight: 400">FIAT ETF by YieldMax targets inverse exposure to Coinbase’s stock, utilizing synthetic covered put strategies.</li> 
 <li style="font-weight: 400">Coinbase’s stock resilience: up 173% last year, 45% YTD, despite Bitcoin’s correction.</li> 
 <li style="font-weight: 400">YieldMax expands with Ether Option ETF, leveraging volatility without direct Ethereum investment.</li> 
</ul> 
YieldMax has <a href="https://twitter.com/YieldMaxETFs/status/1810721829197144553">revealed</a> that it will be releasing its new Exchange-Traded Fund, the FIAT ETF, on NYSE Arca. This fund aims to provide short exposure to the share price of Coinbase Global Inc., the predominant cryptocurrency exchange in the United States. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 YieldMax<img src="https://s.w.org/images/core/emoji/15.0.3/72x72/2122.png" alt="™" class="wp-smiley" style="height: 1em; max-height: 1em;"> Short COIN Option Income Strategy ETF <a href="https://twitter.com/search?q=%24FIAT&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$FIAT</a> launching tomorrow, 7/10.<a href="https://twitter.com/search?q=%24FIAT&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$FIAT</a> provides short exposure to <a href="https://twitter.com/hashtag/Coinbase?src=hash&amp;ref_src=twsrc%5Etfw">#Coinbase</a> and aims to generate monthly income from a <a href="https://twitter.com/hashtag/coveredputselling?src=hash&amp;ref_src=twsrc%5Etfw">#coveredputselling</a> strategy on <a href="https://twitter.com/search?q=%24COIN&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$COIN</a>. 
 See details below and @ <a href="https://t.co/GkowckHOU8">https://t.co/GkowckHOU8</a> <a href="https://t.co/ehE5cWLplU">https://t.co/ehE5cWLplU</a> <a href="https://t.co/HYvSSFeRA3">pic.twitter.com/HYvSSFeRA3</a> 
 — YieldMax ETFs (@YieldMaxETFs) <a href="https://twitter.com/YieldMaxETFs/status/1810721829197144553?ref_src=twsrc%5Etfw">July 9, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
<h3 id="span-style-font-weight-400-yieldmax-introduces-fiat-etf-span">YieldMax Introduces FIAT ETF</h3> 
YieldMax is launching its Short COIN Option Income Strategy ETF, which is intended to offer inverse exposure to Coinbase’s stock.&nbsp; 
As per the summary prospectus, the fund will employ a synthetic covered put strategy to accomplish this goal. 
This includes the purchasing of put options, writing of call options on COIN stock and short put options with strike prices that are at 0-15% below the current prices to earn income. 
However, the prospectus warns that the upside is that the fund will only be able to reap gains from a decline in the COIN stock price if there is not much drawdown because losses can be incurred from short put positions. 
<h3 id="span-style-font-weight-400-market-strategy-and-potential-risks-span">Market Strategy and Potential Risks</h3> 
The FIAT ETF is designed to capitalize on Coinbase’s stock decline while also generating passive monthly income. However, there are some risks involved in the strategy even with the innovation. 
If, however, the stock price of Coinbase goes below the strike price then the fund may face some losses which may affect the potential profit from the synthetic short position.&nbsp; 
The statistics reveal that Coinbase’s stock has appreciated by 173% within the last one year and 45% so far this year even despite Bitcoin pulling back in the recent crypto market sell off. 
The launch of the FIAT ETF is a part of the developing process of the new generation of financial instruments based on cryptocurrencies.&nbsp; 
This trend has accelerated with the launch of bitcoin spot ETFs in January and other strategies, including Roundhill’s Bitcoin-covered call strategy ETF that targets return via options. 
<h3 id="span-style-font-weight-400-yieldmax-s-expanding-portfolio-span">YieldMax’s Expanding Portfolio</h3> 
YieldMax is also increasing its presence in the ETF market. Recently, the firm applied for an Ether Option Income Strategy ETF that will employ the synthetic covered call strategy to capture the volatility of the Spot Ethereum ETFs for the investors’ gains. 
This comes after the company launched its Bitcoin Option Yield Strategy ETF (YBIT) last year. 
Nevertheless, the Ether Option Income Strategy ETF is not going to include the fundamental investment in Ethereum or any other Spot Ethereum ETF.&nbsp; 
However, Tidal Investments will oversee the management of the fund while ZEGA Financial will offer sub-advisory services.

YieldMax Introduces FIAT ETF To Hedge Against Coinbase

Table of Contents

ItsBitcoinWorld

Other articles published on Jul 11, 2024

SEC vs. Binance Lawsuit Update – Judge Rules BUSD Not a Security

Important Tokens to Secure in Your Crypto Wallet

SingularityNET and Filecoin Partner to Boost AI and DePIN Integration

BitMEX Execs Plead Guilty: Years Of Money Laundering Exposed

Germany Transfers $350M Bitcoin, Moves 5,853 BTC to Exchanges

Solana Siap Melejit: Harga SOL Diprediksi Sentuh US$600

Join our free newsletter for daily crypto updates!