Simplify Launches Innovative ETF Combining Income Generation with Bitcoin
The Simplify Bitcoin Strategy PLUS Income ETF (MAXI) is first ETF to provide exposure to bitcoin while generating income by selling short-dated put or calls spreads on the most liquid global equity indices
September 30, 2022
MAXI is the first ETF designed to provide investors not only with exposure to bitcoin but also with the potential to generate income by selling short-dated put or call spreads on the most liquid global equity indices. The Fund targets 100% exposure to bitcoin by investing in the front-month CME futures contract, while on the income side a sophisticated option-writing algorithm dynamically selects option type, underlier, and strikes in an attempt to generate attractive risk-adjusted returns. A second level of risk controls then seeks to mitigate tail risks associated with option selling.
“We’re very excited to be launching MAXI, providing investors for the first time with a capital efficient way to simultaneously gain exposure to bitcoin while potentially adding significant income to a portfolio,” said Paul Kim, CEO & Cofounder of Simplify.
“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,” added Paul.
MAXI is listed on the Nasdaq and has a gross expense ratio of 0.97%. The Fund is the second bitcoin-related offering in the fast-growing Simplify ETF lineup, joining the Simplify US Equity PLUS GBTC ETF (SPBC), which targets a 100% investment in US equities with a simultaneous 10% exposure to bitcoin via the Grayscale Bitcoin Trust (GBTC).
Other recent additions to the Simplify fund family include the Simplify Macro Strategy ETF (FIG), actively managed by well-known portfolio manager Michael Green; the Simplify Managed Futures Strategy ETF (CTA); and the Simplify Interest Rate Hedge ETF (PFIX), one of the best performing ETFs in any category as of the end of Q3 2022.
ABOUT SIMPLIFY ASSET MANAGEMENT INC
Simplify Asset Management Inc. is a Registered Investment Adviser founded in 2020 to help advisors tackle the most pressing portfolio challenges with an innovative set of options-based strategies. By accounting for real-world investor needs and market behavior, along with the non-linear power of options, our strategies allow for the tailored portfolio outcomes for which clients are looking. For more information, visit www.simplify.us.