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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.

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VistaShares Debuts ETF Linking Safe Bonds to Bitcoin Strategy

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 BTC $75,676.91 exposure through options.

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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Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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