Amplify Bitcoin 2% Monthly Option Income ETF (BITY)

The Amplify Bitcoin 2% Monthly Option Income ETF (BITY) is an income-focused fund from Amplify ETFs, a Chicago-area sponsor of thematic and income exchange-traded funds.

The fund obtains exposure to bitcoin, generally through bitcoin-linked exchange-traded products, and writes call options on that exposure to generate premium income. As its name indicates, the strategy targets a monthly income level of about 2 percent, adjusting how much of the position is covered and which strikes are used in pursuit of that aim.

Option writing limits the fund's ability to benefit from large rises in the price of bitcoin, while the fund remains exposed to declines. Distributions depend on option premiums and may include return of capital.