Simplify ETFs announced the launch of the Simplify Bitcoin Strategy PLUS Income ETF (MAXI), which is the first fund to provide exposure to Bitcoin (BTC-USD) while also including an income component.The fund is generally meant to track the price changes of Bitcoin, but also contains an income component generated by selling short-dated put or calls spreads on the most liquid global equity indices. According to the fund's fact sheet, it aims to target 100% exposure to Bitcoin by investing in the front-month CME futures contract. Meanwhile, on the income side, an option-writing algorithm selects option type, underlier and strikes in an attempt to generate attractive risk-adjusted returns.Further detailing the fund's operation, Simplify ETFs said MAXI includes a second level of risk controls that aims to mitigate tail risks associated with option selling.MAXI is listed on the Nasdaq and comes attached with a gross expense ratio of 0.97%. Simplify CEO Paul Kim stated, “Whatever directional call an investor may want to make on Bitcoin, MAXI can play a key role, as the fund’s income component can help add to returns on the upside while also acting as a downside hedge by virtue of the ‘padding’ such income may deliver during potential drawdowns for Bitcoin.”In broader financial news, major averages whipsaw around on Friday as PCE price index data rose more than forecasters expected for the month of August.
$285 Million in Bitcoin Shorts Wiped Out
