Amplify ETFs Launches the Next Generation of Bitcoin Option Income ETFs
BITY & BAGY seek to deliver attractive high monthly income with Bitcoin price exposure
April 29, 2025 – Chicago – Amplify ETFs, a leading provider of breakthrough ETF solutions, announces the launch of the Amplify Bitcoin 24% Premium Income ETF (BITY) and Amplify Bitcoin Max Income Covered Call ETF (BAGY). These two actively managed ETFs seek to employ weekly options-writing strategies on Bitcoin ETPs*, transforming Bitcoin’s volatility into income opportunities with upside potential:
Amplify Bitcoin 24% Premium Income ETF (BITY)
BITY targets 24% annual option premium1 income, seeking to balance upside potential with attractive income generation. BITY seeks to deliver monthly income while maintaining high upside appreciation by writing 5-10% out-of-the-money2 weekly call options on a portion of the portfolio’s Bitcoin exchange-traded products (ETPs).
This short-dated approach provides 4x more opportunities to reset strike prices and collect income compared to monthly options, enabling potential for compounded income and greater total return. BITY is designed for investors seeking Bitcoin growth exposure and income through an active risk-managed approach.
Amplify Bitcoin Max Income Covered Call ETF (BAGY)
BAGY is optimized for maximum monthly option income and seeks to generate 30-60% annualized option premium income while preserving exposure to approximately 5% Bitcoin price appreciation weekly. BAGY writes 5% out-of-the-money covered call options on Bitcoin ETPs with expirations of one week or less, meaning potential option premiums are collected 4x more often versus monthly options, enabling compounded premium income generation.
BAGY’s frequent, high-premium call-writing strategy focuses on converting Bitcoin’s price swings into a consistent income stream with capital appreciation potential each week. Beyond approximately the first 5% price appreciation each week the Fund would not participate in the upside. BAGY provides potential for high income with weekly upside participation.
“Bitcoin’s volatility is a challenge and opportunity for investors,” said Christian Magoon, CEO of Amplify ETFs. “BAGY and BITY represent the next generation of weekly Bitcoin option income strategies as they seek to deliver attractive income while offering upside exposure to Bitcoin’s growth potential. Whether investors seek maximum weekly income with capital appreciation potential via BAGY or prefer to balance an attractive 24% target premium yield with greater capital appreciation potential with BITY, Amplify offers two carefully managed opportunities at compelling price points.”
The process for both ETFs includes buying long Bitcoin exposure through ETPs and synthetic options, writing weekly covered calls, rolling expiring contracts, and seeking to pay high monthly distributions. This structure aims to provide high income, flexibility in call pricing, and clear participation in Bitcoin upside in an accessible investment vehicle.
Both ETFs provide investors with monthly distribution frequency, enhanced total return through income generation potential, and a compelling way to access the growing digital asset space. Their versatility aligns well with allocations in a portfolio's income, growth, or alternative sleeves.
The Funds are actively managed. 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 Funds.
- Amplify Bitcoin 24% Premium Income ETF (BITY): www.AmplifyETFs.com/BITY
- Amplify Bitcoin Max Covered Call Income ETF (BAGY): www.AmplifyETFs.com/BAGY
About Amplify ETFs
Amplify ETFs, sponsored by Amplify Investments, has over $10 billion in assets across its suite of ETFs (as of 3/31/2025). Amplify ETFs delivers expanded investment opportunities for investors seeking growth, income, and risk-managed strategies across a range of actively managed and index-based ETFs. To learn more visit AmplifyETFs.com.
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Media Contacts: Gregory FCA for Amplify ETFs |
2Out of the money (OTM) options has a strike price that the underlying security has yet to reach.
*The Funds do not invest directly in bitcoin. Bitcoin ETPs 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 intra-day on a national securities exchange.
The annualized option premium may be significantly higher or lower than the stated range.
There is no guarantee that BITY 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.
Investing involves risk and possible loss of principal. There is no guarantee the investment strategy will be successful. The Funds are considered to be non-diversified. The Funds are actively managed and their performance reflects the investment decisions that the Adviser makes for the Funds.
The Funds face risks by investing in Bitcoin through the Bitcoin ETP and Bitcoin ETP Options, as bitcoin is a new and highly speculative investment. The market for bitcoin is volatile and subject to rapid changes, regulatory actions, and numerous challenges to widespread adoption. Issues such as slow transaction processing, variable fees, and price volatility further increase these risks.
There is a lack of consensus regarding the regulation of digital assets, including bitcoin, and their markets. Trading in shares of a Bitcoin ETP on U.S. securities exchanges may be halted due to market conditions or for reasons that, in the view of an exchange, make trading in shares of the Bitcoin ETP inadvisable.
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 Funds might miss out on profits if the security’s value rises above the option’s premium and 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 your short position. The premium provides some income but may not fully offset the loss if the stock rallies unexpectedly.
The Funds currently expect to make distributions on a monthly basis, a portion of which may be considered return of capital. Distributions classified as return of capital, which may include option premiums, dividends, capital gains, and interest, reduce an investor’s cost basis in Fund shares. This can result in higher future taxes upon sale, even if shares are sold at a loss relative to the original investment.
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 Funds.
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.