Bitwise Is Shutting Down Six Crypto Option ETFs
Investors holding these option funds face automatic cash redemptions this August after SEC yields hit zero.
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Key takeaways
- Bitwise is liquidating six crypto option exchange-traded funds.
- All six funds reported a 0% 30-day SEC yield prior to the liquidation announcement.
- Investors still holding shares will receive automatic cash redemptions in August.
Bitwise is liquidating six of its crypto option ETFs. The underlying strategy failed to generate real income, so remaining investors face automatic cash redemptions this August.
These funds grabbed attention early on by pitching payouts as high as 25%. In reality, those distributions were mostly funded by handing investors back their own principal capital, not from net trading profits. Right now, all six products report a 0% 30-day SEC yield.
Holding shares through the shutdown? You won't need to file a manual transfer. Bitwise will automatically convert remaining holdings into cash during the August payout process.
Why it matters
Double-digit yield numbers look great on paper, but big headline figures lie. When a fund pays you using your original deposit instead of actual market profit, you aren't earning income. You're getting paid back in pieces. Fund managers keep launching complex derivative products for crypto assets, so traders need to check where a yield actually comes from before buying in.
Source: CryptoSlate
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