Bitwise Liquidates Six High-Payout Crypto Option ETFs Amid Significant Losses

Bitwise, a well-known cryptocurrency asset manager, has announced that it will be liquidating six of its option-income exchange-traded funds (ETFs) on July 31. These ETFs, which offered annualized distribution rates ranging from 7.44% to 25.93%, have been experiencing significant losses in value since their inception.

The six affected ETFs are ICOI, IMRA, IMST, IGME, ICRC, and IETH. They used option-income strategies tied to various cryptocurrencies, including Ethereum, Circle, and Coinbase. Despite their high payout rates, the funds' cumulative NAV returns since inception ranged from -12.47% for IGME to -66.11% for IMST.

The liquidation process will result in automatic cash redemption of shares still held by investors as of August 3. The final net asset value calculation is scheduled for August 7, and proceeds are expected to be distributed to investors through brokers or financial intermediaries on or around August 10.