Bitcoin wheel strategy lets investors earn income from volatility using ETFs like IBIT.

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.