
Explore Bitcoin with Options
Designed to offer investors appreciation potential and the opportunity to harness Bitcoin’s price volatility for consistent income potential.
Bitcoin* covered call ETFs from Amplify ETFs seek to harness Bitcoin’s price volatility to generate regular, high monthly income, all while maintaining the potential for upside growth. These innovative strategies systematically write covered calls on Bitcoin ETPs* or related assets.
Transforming Volatility into an Income Opportunity
Bitcoin’s notable price movements present a unique advantage when paired with a covered call strategy. By leveraging volatility, investors can generate regular premium earnings while still retaining exposure to Bitcoin’s growth. Whether Bitcoin trends upward, downward, or remains range-bound, investors may benefit from resilient income, transforming volatility into opportunity.
The chart shows Bitcoin’s volatility relative to the S&P 500. A higher level of volatility typically results in a higher level of potential option premium received in a covered call strategy.
Past performance is no guarantee of future results. The S&P 500 index tracks the performance of the 500 leading U.S. companies. The Bloomberg Bitcoin Index is designed to measure the performance of a single bitcoin traded in USD. Volatility is the annualized standard deviation of the relative price change for the 10 most recent trading days closing price, expressed as a percentage.
Bitcoin Price Exposure and Optimized Returns with Income Generation
Amplify’s Bitcoin covered call ETFs aim to offer dual advantages: exposure to Bitcoin’s price movements and income generation through option writing. Bitcoin continues to captivate the investment world with its dynamic growth potential and volatility. We believe this approach offers a balanced pathway to total returns that includes capital appreciation and high option premiums potential.
Diversification
Including Bitcoin in an income allocation may provide diversification benefits. As a non-traditional asset, its price movements can be less correlated with traditional income assets and those of stocks or bonds.
Built-in Risk Management
These covered call strategies inherently include a layer of protection against the downside risk through the premiums collected from sold call options, acting as a buffer against potential declines in Bitcoin’s value.
Access to Professionally Managed Strategies
Executing covered call options requires expertise, time, and precision. With BAGY and BITY, investors gain entry to professionally managed options strategies, streamlining the income generation potential without the complexities of direct management.
Bitcoin Income ETFs by Amplify
Amplify ETFs are at the forefront of deploying covered call strategies across a variety of asset classes and now BAGY and BITY offer investment approaches that are carefully designed to optimize income generation, minimize risks, and provide Bitcoin price exposure.
Discover more on how to help transform volatility into a strategic advantage.
Disclosures
*Bitcoin ETPs (Exchange traded products) are exchange-traded investment products not registered under the 1940 Act that seek to generally match the performance of the price of Bitcoin, and trade intraday on a national securities exchange. The funds do not invest directly in Bitcoin.
BITY: There is no guarantee the Fund will achieve the Target Option Premium in any given year. If the NAV of the Fund remains level or decreases during any one-year period, the annualized premium generated by the Fund may be significantly less than the Target Option Premium for that time period.
Carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Fund’s statutory and summary prospectuses, which may be obtained at AmplifyETFs.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Investing in funds that focus on Bitcoin through Bitcoin ETP and ETP Options carries risks and there is no guarantee the investment strategy will be successful. These funds, being non-diversified and actively managed, also depend heavily on the investment choices of the Adviser. Bitcoin and related assets, are a new and highly speculative investment, face market volatility, regulatory uncertainties, and challenges such as slow transactions and price fluctuations. Furthermore, the lack of clear regulation on digital assets adds to the risk, and trading may be suspended under certain market conditions or exchange decisions. Option contract prices are volatile and affected by changes in the underlying asset’s value, interest or currency rates and expected volatility all of which are influenced by political, fiscal, and monetary policies.
The Funds may use FLEX Options, which can be less liquid than standardized options. This may make it difficult to close out FLEX Options positions at desired times and prices.
With covered call risk the Fund might miss out on profits if the security’s value rises above the option’s premium end strike price while still facing potential losses if the value declines. With covered put risk significant stock price increases can lead to substantial losses on a short position. The premium provides income but may not fully offset the loss if the stock rallies unexpectedly.
The Fund currently expects to make distributions on a monthly basis, a portion of which may be considered return of capital. Amplify Investments LLC serves as the investment adviser to the Funds. Kelly Strategic Management. LLC and Penserra Capital Management LLC each serve as investment sub-advisers to the Fund.
1Formerly Amplify Bitcoin 24% Premium Income ETF.
Amplify ETFs are distributed by Foreside Fund Services, LLC.
Not FDIC Insured | No Bank Guarantee | May Lose Value
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in Amplify Funds statutory and summary prospectus, which may be obtained by calling 855-267-3837 or by visiting AmplifyETFs.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Amplify ETFs are distributed by Foreside Fund Services, LLC.