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VistaShares Debuts ETF Linking Safe Bonds to Bitcoin Strategy
Key Takeaways
- VistaShares launched BTYB, an ETF mixing US Treasurys with Bitcoin exposure through an options-based strategy;
- About 80% of BTYB holds Treasury bonds, while the rest links to Bitcoin via call options on BlackRock’s iShares Bitcoin Trust;
- The ETF targets twice the yield of a five-year Treasury note, though payouts vary with interest rates and options market shifts.
VistaShares has introduced a new exchange-traded fund (ETF) named BTYB, which currently trades on the New York Stock Exchange.
The fund primarily invests in US Treasury assets but adds an additional layer of Bitcoin
It is actively managed and aims to provide investors with weekly income while keeping most of the portfolio in low-risk government securities.
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Most of BTYB’s capital, about 80%, is held in US Treasury bonds and related products. The rest connects to Bitcoin’s market movements using a strategy based on options rather than direct cryptocurrency ownership.
According to the fund’s holdings, this exposure comes from call options on iShares Bitcoin Trust, which is managed by BlackRock.
The fund uses a synthetic covered call approach, which creates a position that behaves like owning Bitcoin without actually holding it. Then it sells call options on that position to generate additional income.
This setup can bring higher returns from option premiums but limits how much the fund benefits if Bitcoin’s price rises. Because of this, BTYB does not move in sync with Bitcoin’s spot price.
VistaShares said the ETF seeks to yield about twice that of a five-year Treasury note. However, this figure is only a target, not a promise. Weekly payouts can vary depending on changes in interest rates and how the options market performs.
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