Description

This fund presents a distinctive approach for investors seeking exposure to Bitcoin. It achieves this by primarily investing in an underlying Bitcoin exchange-traded fund, notably the Purpose Bitcoin ETF. Complementing this, the fund actively sells covered call and/or put options, targeting 10% to 50% of its portfolio holdings. These option contracts can be traded on public exchanges or through private, over-the-counter agreements. The strike prices for the sold options are generally set at-the-money (ATM) or out-of-the-money (OTM), and they typically mature within a one-to-three-month timeframe. The exact proportion of the portfolio against which options are written, the specific type of options employed, and their terms are all determined by the fund manager's assessment of market conditions and the attractiveness of available option premiums. The fund's primary objective is to generate a combination of total return, consistent yield, and long-term capital appreciation. It's important to note that the use of options within this strategy is not intended to reduce portfolio volatility. Beyond the standard investment risks, potential investors should carefully consider the tax implications of this strategy. Certain transactions may result in income being classified as ordinary income for tax purposes, rather than benefiting from capital gains treatment. Additionally, for specific share classes requiring currency risk mitigation, the fund may utilize other derivative instruments.