Bitwise Closes Six Cryptocurrency Option Income ETFs with 0% SEC Yields

Bitwise Asset Management is liquidating six cryptocurrency option income exchange-traded funds (ETFs) that offered high returns but had 0% SEC yields. The funds, which used option-income strategies tied to Coinbase, Marathon Digital, Strategy, GameStop, Circle, and Ethereum, stopped trading on July 31. Shareholders who still hold shares as of August 3 will face automatic cash redemption rather than an exchange sale.

The Bitwise Funds Trust board voted to liquidate the ICOI, IMRA, IMST, IGME, ICRC, and IETH funds on June 30, according to a Securities and Exchange Commission (SEC) prospectus supplement. The funds had reported annualized distribution rates ranging from 7.44% to 25.93%, but their 30-day SEC yields were all 0%. In April, the funds estimated payouts of 100% return of capital, while in May, Bitwise revised its estimates, showing a mix of 100% return of capital and 0%.

The final net asset value (NAV) calculation is scheduled for August 7, and proceeds are expected to reach investors through brokers or other financial intermediaries on or around August 10. The sequence means that holders will not be choosing an execution price once trading stops. Shares still held as of August 3 will be redeemed for cash at the fund's NAV.