Bitwise Axed Six Crypto Option ETFs Amidst Negative Returns

Bitwise Asset Management announced on July 31st that it would liquidate six of its crypto option ETFs, effective immediately. The funds in question are ICOI, IMRA, IMST, IGME, ICRC, and IETH, which had been offering investors annualized distribution rates ranging from 11.15% to 25.93%. However, the funds' returns since inception have been negative, with cumulative NAV returns as low as -66.11% for IMST.

The Bitwise Funds Trust board voted on June 30th to liquidate the six option-income ETFs, according to an SEC prospectus supplement. The decision was made ahead of schedule, and shareholders who still hold shares as of August 3rd will have their shares automatically redeemed for cash at the fund's net asset value.

The final net asset value calculation is scheduled for August 7th, with proceeds expected to reach investors through brokers or other financial intermediaries on or around August 10th. The amount remaining holders receive will depend on the final NAV, but it's clear that investors should be prepared for a potential loss.