The folks at a $10-billion-AUM (as of March 31) fund firm near Chicago are rolling out a pair of bitcoin-focused funds designed to generate income through options strategies related to bitcoin ETPs (without directly investing in bitcoin).

Christian William Magoon Amplify Investments LLC CEO

Yesterday (April 29), Christian Magoon, CEO of Amplify ETFs [profile], unveiled the launch of the Amplify Bitcoin Max Income Covered Call ETF (BAGY on the Cboe BZX) and the Amplify Bitcoin 24% Premium Income ETF (BITY). Lisle, Illinois-based Amplify Investments LLC serves as investment advisor to both BITY and BAGY, while Denver-based Kelly Strategic Management LLC (dba Kelly Intelligence) and Orinda, California-based Penserra Capital Management LLC serve as both new ETFs' subadvisors.

BAGY and BITY launched yesterday, and both funds come with an expense ratio of 65 basis points. As of today, BITY has about $997,000 in AUM, while BAGY has about $998,000.

The two new ETFs both use the same five PMs:

Christine Johanson, director at Penserra;

Kevin Kelly, CEO of Kelly Intelligence;

Dustin Lewellyn, chief investment officer of Penserra;

Gerry O'Donnell, director at Kelly Intelligence; and

Ernesto Tong, managing director at Penserra.

"Bitcoin's volatility is a challenge and opportunity for investors," Magoon states. "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."

BITY and BAGY are both actively managed, non-diversified series of the Amplify ETF Trust. The funds' other service providers include:

Chapman and Cutler LLP as counsel;

Cohen & Company, Ltd. as independent accounting firm;

ACA's Foreside Fund Services, LLC as distributor;

U.S. Bancorp Fund Services, LLC (dba U.S. Bank Global Fund Services) as administrator, fund accounting agent, and transfer agent; and

U.S. Bank National Association as custodian and securities lending agent.

 

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