YieldMax, a prominent ETF issuer, recently filed with the US Securities and Exchange Commission (SEC) to launch an Ether Option Income Strategy ETF. This strategic move comes ahead of the potential launch of Spot Ethereum ETFs in the United States. The ETF will be listed on the New York Stock Exchange (NYSE) Arca.

The proposed ETF will employ a synthetic covered call strategy, leveraging the volatility of underlying Spot Ethereum ETFs to generate income for investors. By selling call options, holders of Spot Ethereum ETFs can earn additional income and manage their risk exposure effectively. The fund will not directly invest in Ethereum or any upcoming Spot Ethereum ETF. Instead, Tidal Investments will actively manage the Ether Option ETF, with ZEGA Financial providing sub-advisory services.

This filing follows the previous launch of YieldMax’s Bitcoin Option Yield Strategy ETF (YBIT) last year. The YBIT ETF is listed on NYSE Arca and carries an expense ratio of 0.99%. Meanwhile, there is significant activity around Spot Ethereum ETFs.

All eight applicants, including BlackRock, 21Shares, Fidelity, Grayscale, Franklin Templeton, VanEck, Bitwise, and Invesco, recently submitted S-1 amendments to the SEC. These amendments provide more details on fees and seed investments. Only Franklin Templeton and VanEck have disclosed their fees, set at 0.19% and 0.20%, respectively.

The SEC has already approved the 19b-4 forms for these ETFs. However, the registration statements need to be finalized before trading can commence. Some firms have also disclosed the seed capital invested in these ETFs, highlighting their commitment to the funds and providing the initial capital necessary for trading.

The market is now keenly awaiting the SEC’s final decision, with the launch date rumored to be July 2. The SEC’s rigorous review process ensures that all disclosure and regulatory procedures are thoroughly completed before ETFs can begin trading. Hence, the S-1 amendments suggest continuous discussions between the SEC and applicants.