2x Bitcoin Strategy ETF (BITX) Covered Calls

The Volatility Shares 2x Bitcoin Strategy ETF is the first U.S. fund designed to provide 2x leveraged daily exposure to the price of Bitcoin. It seeks to achieve twice the daily performance of the S&P CME Bitcoin Futures Daily Roll Index by investing in front-month CME Bitcoin futures. As a daily-resetting leveraged product, it is intended as a tactical, short-term trading tool for sophisticated investors and requires active daily monitoring of market volatility and compounding effects.

You can sell covered calls on 2x 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 BITX (prices last updated Fri 4:16 PM ET):

2x Bitcoin Strategy ETF (BITX) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
16.54 +2.67 16.55 16.57 25.9M - 0.0
Covered Calls For 2x Bitcoin Strategy ETF (BITX)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 17 1.29 15.28 8.4% 204%
Mar 20 17 2.01 14.56 13.8% 117%
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Extended Business Description

Volatility Shares 2x Bitcoin Strategy ETF is a leveraged exchange-traded fund that aims to provide investment results, before fees and expenses, that correspond to twice (2x) the daily performance of Bitcoin. BITX does not invest directly in physical Bitcoin; instead, it gains exposure through cash-settled Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME). This structure allows traders to magnify their exposure to Bitcoin’s price movements within a traditional, regulated brokerage framework.

Core Strategy and Operations

  1. Leveraged Futures Management: The fund maintains a position in front-month CME Bitcoin futures equal to 200% of its net asset value. It employs a daily rebalancing mechanism to reset its leverage, which ensures the 2x target is met for a single day but can lead to "volatility decay" over longer holding periods.
  2. Collateral and Cash Management: To support its high-leverage futures positions, the fund invests its remaining assets in high-quality, short-term cash equivalents and U.S. Treasury bills. This collateral generates interest income that helps offset the fund’s management fees and operational costs.
  3. Regulated Structure: BITX is registered under the Investment Company Act of 1940 and provides a 1099 tax reporting structure, avoiding the K-1 tax forms typically associated with commodity-based investments.

Competitive Landscape

As the pioneer of leveraged crypto ETFs in the U.S., BITX competes primarily with other high-beta and leveraged digital asset products. Its most direct competitor is the ProShares Ultra Bitcoin ETF, which also targets 2x daily returns. For investors seeking inverse exposure, the fund is often traded alongside the ProShares Short Bitcoin ETF. In the broader ecosystem, BITX competes for tactical capital with 2x leveraged equity ETFs like GraniteShares 2x Long COIN Daily ETF and T-Rex 2X Long MSTR Daily Target ETF. It also serves as a high-volatility alternative to standard spot products like the iShares Bitcoin Trust.

Strategic Outlook and Innovation

Entering 2026, BITX has established itself as one of the most liquid vehicles for institutional traders looking to capitalize on Bitcoin’s reflexive price cycles. A primary strategic focus is maintaining high average daily volume to support the massive institutional inflows and outflows characteristic of "risk-on" environments. Innovation in this space is centered on the maturity of the BITX options market, which has become a staple for sophisticated yield-generation and hedging strategies. The fund is also navigating an environment where Bitcoin is increasingly used as collateral in traditional finance, potentially increasing the demand for its high-beta shares as tactical portfolio hedges. By focusing on minimized tracking error and efficient futures rolling, Volatility Shares aims to keep BITX as the benchmark for leveraged digital asset exposure in a market increasingly defined by institutional liquidity flows.