CHICAGO — Amplify ETFs, a leader in innovative ETF solutions, has introduced two groundbreaking Bitcoin-focused funds: the Amplify Bitcoin 24% Premium Income ETF (BITY) and the Amplify Bitcoin Max Income Covered Call ETF (BAGY). These actively managed ETFs leverage weekly options-writing strategies on Bitcoin exchange-traded products (ETPs), aiming to convert Bitcoin’s volatility into consistent income streams while retaining upside potential.
Key Features of the New ETFs
Amplify Bitcoin 24% Premium Income ETF (BITY)
- Target Yield: 24% annual option premium income¹.
- Strategy: Writes 5–10% out-of-the-money² weekly call options on Bitcoin ETPs.
Benefits:
- Monthly income generation.
- High upside appreciation potential through frequent strike price resets (4x more opportunities than monthly options).
- Ideal for investors seeking balanced Bitcoin exposure with income generation.
👉 Discover how BITY optimizes Bitcoin volatility for income
Amplify Bitcoin Max Income Covered Call ETF (BAGY)
- Target Yield: 30–60% annualized option premium income.
- Strategy: Writes 5% out-of-the-money weekly covered calls on Bitcoin ETPs.
Benefits:
- Maximizes monthly income with weekly upside participation.
- Compounded premium income due to weekly expirations.
- Designed for high-income seekers with capped weekly appreciation (~5%).
Why These ETFs Matter
Christian Magoon, CEO of Amplify ETFs, highlights:
"Bitcoin’s volatility is both a challenge and an opportunity. BAGY and BITY represent the next evolution in Bitcoin income strategies, offering investors tools to harness volatility for premium income while staying positioned for growth."
Structural Advantages
- Active Management: Sub-advisers Kelly Strategic Management and Penserra Capital optimize strategies.
- Flexibility: Weekly options allow dynamic adjustments to market conditions.
- Accessibility: ETFs provide institutional-grade Bitcoin strategies in a regulated wrapper.
Risks and Considerations
- Bitcoin Volatility: Bitcoin ETPs face price swings, regulatory uncertainties, and liquidity risks.
- Options Risks: Covered calls may limit upside; premiums may not offset losses in declining markets.
- Distributions: Monthly payouts may include return of capital.
*¹ Option premium: Payment received for selling the right to trade an asset at a set price.
² Out-of-the-money (OTM): Option strike price not yet reached by the underlying asset.*
FAQ Section
How do BITY and BAGY generate income?
Both ETFs sell weekly call options on Bitcoin ETPs, collecting premiums regardless of Bitcoin’s price movement.
What’s the difference between BITY and BAGY?
- BITY: Balances income (24% target) with higher upside potential.
- BAGY: Prioritizes maximum income (30–60% target) with capped weekly appreciation.
Are these ETFs suitable for long-term Bitcoin investors?
Yes, but they’re optimized for income. Investors seeking pure price appreciation might prefer direct Bitcoin exposure.
How frequently are distributions paid?
Monthly, though amounts vary based on option premiums and Bitcoin performance.
👉 Explore Bitcoin investment strategies
About Amplify ETFs
Amplify manages over $10 billion in ETF assets (as of March 2025), offering strategies across growth, income, and alternatives. Learn more at AmplifyETFs.com.
Disclaimer: Investing involves risks, including loss of principal. Carefully review prospectuses before investing.