Roundhill Bitcoin Covered Call Strategy ETF (YBTC) Covered Calls

The Roundhill Bitcoin Covered Call Strategy ETF is an actively managed fund that seeks to provide current income and exposure to the price return of Bitcoin-linked ETFs. The fund employs a synthetic covered call strategy, utilizing a combination of options contracts and U.S. Treasury holdings to generate high-frequency income. It is designed for investors who want to participate in the price action of Bitcoin while collecting substantial premiums via a weekly distribution schedule.

You can sell covered calls on Roundhill Bitcoin Covered Call 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 YBTC (prices last updated Fri 4:16 PM ET):

Roundhill Bitcoin Covered Call Strategy ETF (YBTC) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
22.18 +2.38 22.00 22.50 197K - 0.0
Covered Calls For Roundhill Bitcoin Covered Call Strategy ETF (YBTC)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 22 0.20 22.30 -1.3% -31.6%
Mar 20 22 0.05 22.45 -2.0% -17.0%
Subscribers get access to the full covered call chain, and more features.

Want to make money with covered calls?  Sign Up For A Free Trial

Extended Business Description

Roundhill Bitcoin Covered Call Strategy ETF (YBTC) is a yield-focused investment vehicle that provides indirect exposure to the world’s largest cryptocurrency. Unlike spot Bitcoin ETFs, YBTC is specifically engineered to convert Bitcoin’s characteristic volatility into consistent cash flow through an active derivative strategy.

Core Strategy and Operations

  • Synthetic Covered Call Model: The fund does not hold Bitcoin directly. Instead, it creates "synthetic" long exposure using a combination of long call options and short put options on Bitcoin ETPs (principally iShares Bitcoin Trust). To generate income, the fund sells (writes) call options against this position, harvesting the high premiums associated with Bitcoin’s implied volatility.
  • Weekly Distribution Schedule: Originally launched with a monthly payout, YBTC transitioned to a weekly distribution model by early 2025. As of February 2026, it typically declares and pays distributions every Thursday, providing shareholders with one of the highest-frequency income streams in the digital asset space.
  • Collateral Management: A significant portion of the fund’s assets is held in short-term U.S. Treasuries. These holdings serve as collateral for the options strategy and provide a baseline level of interest income, which complements the option premiums distributed to investors.

Risk Profile and Performance

Because YBTC writes call options, its upside potential is capped during aggressive Bitcoin bull markets. Conversely, the synthetic long position provides significant downside exposure; if the price of Bitcoin drops sharply, the fund’s NAV will decline. The high yield is often a mix of option premium and, in certain market conditions, Return of Capital (ROC). It is considered a high-risk vehicle suitable for tactical income or as a yield-enhancement tool within a diversified crypto-adjacent portfolio.

Competitive Landscape

YBTC competes in a crowded field of Bitcoin income products. Its most direct rival is the YieldMax Bitcoin Option Income Strategy ETF, which follows a similar synthetic call strategy. Other notable peers include the NEOS Bitcoin High Income ETF and the Simplify Bitcoin Strategy PLUS Income ETF. As of February 2026, YBTC maintains a net expense ratio of 0.95%, positioning it as a competitively priced option compared to YieldMax’s 0.99% offering.