Trading ended July 31 for funds tied to Coinbase, Marathon Digital, Strategy, GameStop, Circle and Ethereum, with cash expected around Aug. 10 for shareholders still holding shares after Aug. 3.
Bitwise's six option-income ETFs stopped trading on Friday, July 31 and are being liquidated through automatic cash redemption for investors still holding shares as of Aug. 3. The payout will be based on the final NAV (net asset value, or per-share portfolio value) calculated on Aug. 7, with proceeds expected through brokers or other financial intermediaries on or around Aug. 10. The Bitwise Funds Trust board approved the closures on June 30 for ICOI, IMRA, IMST, IGME, ICRC and IETH, according to an SEC (U.S. securities regulator) prospectus supplement. The products used option-income strategies tied to Coinbase, Marathon Digital, Strategy, GameStop, Circle and Ethereum, and Bitwise has described similar products as using covered calls (selling upside for premium income) to turn crypto volatility into monthly income. Bitwise's disclosures showed 0% 30-day SEC yield for all six funds even as annualized distribution rates ranged from 11.15% to 25.93% in April and 7.44% to 22.36% by June. Most payouts were estimated as return of capital (cash treated as returning invested principal), while since-inception NAV returns stayed negative. Fund pages dated July 26 through July 29 showed about $23.1 million in combined pre-liquidation assets, and the company did not disclose why the board closed the funds.