The launch of spot Bitcoin ETFs such as the iShares Bitcoin Trust ETF (IBIT) enables investors to use the wheel strategy to generate income from Bitcoin's price swings. This strategy involves selling cash-secured puts to potentially buy shares at a lower price, then selling covered calls on those shares to earn premiums repeatedly. It benefits from Bitcoin's high volatility, which increases option premiums, but carries risks if prices drop sharply. Investors often prefer to run this strategy in tax-advantaged accounts due to complex tax implications. Overall, the wheel offers a structured way to profit from Bitcoin volatility beyond just holding the asset.
Bitcoin has dropped 29.3% year-to-date, trading around $61,798, about 50% below its all-time high from October 2025. Despite this volatility, investors can use new tools like cash-secured puts on Bitcoin ETFs, such as the iShares Bitcoin Trust ETF (I...
In 2026, spot Bitcoin ETFs have struggled as Bitcoin's price fell over 29%, passing losses directly to investors. In contrast, the Amplify Transformational Data Sharing ETF (BLOK), which invests in blockchain and crypto-related companies rather than ...
Bitcoin climbed back above $60,000 after dipping below that level for the first time since October 2024, despite losing about 27% of its value in 2026 and being 50% off its all-time high. Traders remain active in crypto markets, with significant opti...
