Roundhill Files for A Bitcoin Covered Call ETF, What’s That Exactly?

Bhushan Akolkar
October 28, 2023
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Bitcoin ETF

As the developments around spot Bitcoin ETF approval catches steam, more and more players are willing to join the bandwagon. Bloomberg’s senior ETF analyst Eric Balchunas stated that the SEC-registered financial player Roundhill has filed for a Bitcoin-covered call ETF.

A New Bitcoin ETF in the Market?

Roundhill has recently submitted an application for a Bitcoin Covered Call ETF, which will comprise a bitcoin futures ETF and engage in the writing of call and put options to generate income. Roundhill Investments is a registered investment advisor under the SEC, specializing in providing groundbreaking ETF solutions.

It is clear that financial players have been exploring ways to offer Bitcoin exposure to their institutional clients. Responding to Blachunas’ tweet, crypto market enthusiasts that the SEC should be coming up with clear regulations allowing people to directly buy the BTC.

SEC’s reluctance to spot Bitcoin ETF has forced financial institutions to create a workaround by launching other products such as the Bitcoin futures ETF, etc. However, the crypto community desires an ETF that allows users to directly hold Bitcoins.

Current ETF Developments

The BTC price has given a strong rally to $35,000 amid the positive developments around the Bitcoin ETF approval, expected within the next few months. Despite the partial retracement, the Bitcoin price has also been holding well up to the $34,000 level.

SEC Chair Gary Gensler has affirmed that the commission is reviewing 8-10 applications for a physical Bitcoin ETF. These disclosures, reflecting a possible transformation in the market, coincide with a remarkable surge in Bitcoin’s value, amplifying expectations from stakeholders. Furthermore, he emphasized the meticulous scrutiny the staff is applying to these applications, emphasizing the regulatory body’s comprehensive review process.

Analysts have a mixed review on how the BTC price shall react after the ETF approval. Some believe that the Bitcoin rally has been already priced in for the upcoming ETF. On the other hand, others believe that capital from Gold will flow into Bitcoin ETF after the SEC approval.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.