Bitwise upgrades IMST ETF to Buy for better downside protection; MSTY downgraded to Hold amid NAV risks.

Bitwise has upgraded the Bitwise MSTR Option Income Strategy ETF (IMST) to a Buy rating due to its improved option income strategy that offers stronger downside protection in weak MSTR market conditions. Meanwhile, the Yieldmax MSTR Option Income Strategy ETF (MSTY) was downgraded to Hold because it now focuses more on income with a nearly fully overwritten payoff but carries ongoing risks of net asset value (NAV) erosion. A new alternative, the YieldMax MSTR Performance & Distribution Tg 25 ETF (MSST), is highlighted for balancing upside potential with sustainable yields and less NAV erosion compared to MSTY. These option-based ETFs cater to different investor views on MSTR, with IMST suited for rangebound or weak markets and MSST for bullish investors seeking stable income and controlled upside.