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WASHINGTON – YieldMax has officially filed an application with the U.S. Securities and Exchange Commission (SEC) for a new exchange-traded fund (ETF), the MSTY ETF, scheduled to launch in 2024. The proposed fund is designed to attract conservative investors by providing monthly income through a synthetic covered call strategy on MicroStrategy (NASDAQ:MSTR) derivatives, while capping monthly call option gains at 15 %.
The MSTY ETF’s innovative approach allows investors to benefit from market movements without having to directly own MicroStrategy shares. This strategy aims to provide consistent returns even during market fluctuations, as the monthly return for investors is structured to be stable and not directly linked to the performance of MicroStrategy stock.
MicroStrategy has been in the spotlight due to its aggressive investments in bitcoin. On November 30, MicroStrategy CEO Michael Saylor announced the company’s purchase of an additional 16,130 bitcoins at an average price of $36,785 each. With this acquisition, MicroStrategy’s bitcoin holdings reach approximately 174,530 BTC, worth approximately $7.6 billion.
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