Global X Blockchain & Bitcoin Strategy ETF (BITS) Covered Calls

The Global X Blockchain & Bitcoin Strategy ETF is an actively managed fund designed to capture the growth of the digital asset ecosystem. It provides a "hybrid" exposure by investing in a combination of Bitcoin futures contracts and equity securities of companies leading blockchain innovation. This dual approach allows investors to participate in the price movements of Bitcoin while also gaining exposure to the operational growth of miners, exchanges, and infrastructure providers.

You can sell covered calls on Global X Blockchain & Bitcoin Strategy ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for BITS (prices last updated Fri 4:16 PM ET):

Global X Blockchain & Bitcoin Strategy ETF (BITS) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
56.31 +6.60 55.13 57.30 13K - 0.0
Covered Calls For Global X Blockchain & Bitcoin Strategy ETF (BITS)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 55 2.80 54.50 0.9% 21.9%
Mar 20 56 3.80 53.50 4.7% 39.9%
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Extended Business Description

Global X Blockchain & Bitcoin Strategy ETF is a multi-asset exchange-traded fund that provides a comprehensive gateway to the blockchain economy. Managed by Global X, the fund utilizes an active strategy to balance exposure between digital asset price appreciation and equity-based growth. Unlike pure-play spot ETFs, BITS seeks to mitigate the specific risks of each sub-sector by diversifying across the "value chain" of the decentralized economy.

Core Investment Strategy and Operations

  1. Hybrid Asset Allocation: The fund typically invests in a mix of Bitcoin futures contracts and the Global X Blockchain ETF (BKCH). This provides a blend of "beta" from Bitcoin’s price and "alpha" from the technical and operational advancements of the underlying blockchain companies.
  2. Futures Management: BITS invests in U.S.-listed, cash-settled Bitcoin futures through a wholly-owned subsidiary. This allows the fund to gain crypto exposure within a regulated framework, avoiding the need for direct digital asset custody while maintaining liquidity.
  3. High Distribution Model: BITS is notable for its significant yield profile, frequently distributing net capital gains and income derived from its unique combination of equity dividends and futures-related treasury management.

Competitive Landscape

BITS competes in a unique "strategy" category that bridges the gap between spot Bitcoin products and pure equity funds. Its primary competitors include the ProShares Bitcoin Strategy ETF for futures-only exposure and the Valkyrie Bitcoin Miners ETF for concentrated mining exposure. It also faces competition from diversified crypto-equity funds like the Bitwise Crypto Industry Innovators ETF and income-focused alternative vehicles like the Amplify Bitcoin 2% Monthly Option Income ETF. Against spot products like iShares Bitcoin Trust, BITS differentiates itself through its additional exposure to corporate earnings within the blockchain sector.

Strategic Outlook and Innovation

In 2026, the fund is focused on the "convergence phase" of the digital economy, where blockchain technology is increasingly integrated into traditional enterprise software and financial services. A primary strategic objective is the optimization of its "yield-stacking" capabilities—leveraging the rising interest rates on its cash collateral to bolster shareholder distributions. Innovation efforts are directed at dynamic rebalancing between futures and equities based on "on-chain" market sentiment data, aiming to reduce drawdowns during crypto-winter cycles. As global adoption of tokenized assets accelerates, BITS is positioning itself as an "all-weather" crypto vehicle that captures both the scarcity value of Bitcoin and the productivity of the companies building the next-generation internet (Web3). By leveraging Global X’s thematic research leadership, BITS aims to remain the premier institutional choice for diversified, regulated crypto-thematic exposure.