Hamilton ETFs Files for Bitcoin Yield Leveraged ETF in Canada
Hamilton ETFs has filed a preliminary prospectus for an actively managed Bitcoin yield exchange-traded fund (ETF) in Canada, aimed at capitalizing on Bitcoin price movements and generating additional income. The proposed Hamilton Enhanced Bitcoin DayMAX ETF utilizes leverage and short-term option strategies to enhance yield alongside Bitcoin exposure. This is according to Cointelegraph.com reports. .
The new fund employs "covered-call" strategies, with leverage capped at approximately 25% of the net asset value. This strategy is designed to generate monthly income by collecting premiums from short-term option contracts linked to Bitcoin (BTC) price volatility. The company plans to list this ETF on the Cboe Canada exchange under the ticker BDAY.
According to Hamilton ETFs, the fund is part of the DayMAX ETF series and utilizes 0DTE (zero days to expiration) option contracts. The application is currently under review by Canadian regulatory authorities. For context, Hamilton ETFs manages approximately $16 billion in assets.
Recently, asset managers have increasingly viewed digital assets as a category suited for active management strategies rather than just passive investment products. For instance, major financial institutions like BlackRock and Goldman Sachs have also filed for Bitcoin-related yield-generating ETF products. Additionally, T. Rowe Price is working on active ETFs that invest directly in cryptocurrencies such as Bitcoin, Ethereum, and Solana.
According to a Goldman Sachs Asset Management report, actively managed ETFs are growing rapidly on a global scale. The early-stage and highly volatile nature of the crypto market makes it an ideal environment for complex trading strategies and portfolio management.
