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YieldMax Requests Approval for New ETF Based on MicroStrategy Stocks

YieldMax Requests Approval for New ETF

The company YieldMax has recently filed a request for a new ETF based on MicroStrategy stocks, the company that holds the most bitcoins in the world.

If approved by the SEC, the ETF will operate under the symbol ‘MSTY,’ which is very close to MicroStrategy’s stock symbol ‘MSTR,’ which is currently trading at around $570, an increase of about 292% since the beginning of the year.

According to the filing submitted on December 7th, the ETF follows a ‘synthetic covered call strategy.’ Essentially, this strategy involves a combination of buying call options and selling put options, which will then be distributed monthly to MSTY ETF holders.

The filing also states that ‘the ETF will never hold MicroStrategy stock directly.’

The ETF’s Returns Independent of MicroStrategy’s Performance

What makes this ETF particularly interesting is that the monthly returns generated are not directly dependent on the growth of MicroStrategy stocks.

This means that investors can continue to earn returns even if MicroStrategy stocks experience significant losses.

MicroStrategy, One of the Largest Holders of BTC on Earth

MicroStrategy has experienced a remarkable increase in its stocks, with a growth of over 290% since the beginning of 2023.

This performance is even more notable as MicroStrategy has recently acquired an additional 16,130 BTC, bringing its total to approximately 174,530 BTC, worth around $7.6 billion.

It should be noted that Michael Saylor, the CEO of MicroStrategy, is known for his optimism about the future of Bitcoin, as well as being one of the individuals who holds the most Bitcoin in the world.

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