News
Public · Published
Bitwise is liquidating six crypto option ETFs that offered 25% payouts while returning investors' own capital
Bitwise announced it is liquidating six crypto‑option exchange‑traded funds that had promised 25% payouts, returning investors' original capital and setting an automatic cash redemption for remaining holders in August.
Published:
Updated:
What happened
Bitwise announced it is liquidating six crypto‑option exchange‑traded funds that had promised 25% payouts, returning investors’ original capital and setting an automatic cash redemption for remaining holders in August.
Confirmed
Global impact / market context
The liquidation ends a high‑yield product that attracted investors seeking large returns, and it forces them to receive cash rather than continue holding the funds, potentially reducing exposure to crypto‑option strategies.
Analyst inference
These ETFs reported a 0% 30‑day SEC yield, indicating they generated no income for investors, and the forced redemption may shift capital toward other crypto products or traditional assets.
Analyst inference
What to watch
- How quickly remaining investors redeem their shares and whether the cash proceeds are reinvested in other crypto‑related funds. Analyst inference
- Regulatory scrutiny of crypto‑option ETFs, since the SEC yield was zero and the products promised high payouts. Analyst inference
- Potential launch of new crypto‑focused ETFs with more realistic yield expectations, which could attract displaced capital. Analyst inference
Affected assets
- ETH — Ethereum