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October 31, 2023

Roundhill Files for Bitcoin Covered Call ETF: Latest Development in the Rise of Bitcoin ETFs

Ethan Lim
Written byEthan LimWriter
Researched byNikos PapadopoulosResearcher

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

Roundhill Files for Bitcoin Covered Call ETF: Latest Development in the Rise of Bitcoin ETFs

A New Bitcoin ETF in the Market?

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

It is clear that financial players have been exploring ways to offer Bitcoin exposure to their institutional clients. The SEC's reluctance to approve a spot Bitcoin ETF has forced financial institutions to create workarounds by launching other products, such as the Bitcoin futures ETF. However, the crypto community desires an ETF that allows users to directly hold Bitcoins.

Current ETF Developments

The BTC price has experienced a strong rally, reaching $35,000, amid the positive developments surrounding the Bitcoin ETF approval, which is expected within the next few months. Despite a partial retracement, the Bitcoin price has remained stable, holding up to the $34,000 level.

SEC Chair Gary Gensler has affirmed that the commission is currently 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, Gensler emphasized the meticulous scrutiny the staff is applying to these applications, highlighting the regulatory body's comprehensive review process.

Analysts have mixed opinions on how the BTC price will react after the ETF approval. Some believe that the Bitcoin rally has already been priced in for the upcoming ETF, while others anticipate that capital from Gold will flow into the Bitcoin ETF after the SEC's approval.

Conclusion

The rise of Bitcoin ETFs has gained significant momentum, with Roundhill's recent filing for a Bitcoin Covered Call ETF being the latest development. As financial players explore ways to offer Bitcoin exposure to institutional clients, the demand for a direct Bitcoin ETF remains high within the crypto community. The current ETF developments, including the SEC's review of multiple applications and the positive impact on Bitcoin's price, indicate a potential transformation in the market. However, analysts have differing views on the future price movement of BTC post-ETF approval. As the industry eagerly awaits the SEC's decision, stakeholders should closely monitor these developments and their potential implications for the cryptocurrency market.

About the author
Ethan Lim
Ethan Lim
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Ethan Lim, a native of the Lion City, is Singapore’s rising star in the domain of online casino guide localization. He masterfully blends his intimate knowledge of local culture with international gaming standards to produce content that resonates deeply with Singaporeans.

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