BitcoinWorld Ohio Crypto Legislation: Unlocking Potential for State Funds with Bold Digital Asset Investments Ohio is making headlines once again, signaling a powerful stride towards embracing the future of finance. The Buckeye State is quickly positioning itself as a vanguard in the evolving landscape of digital assets, with recent legislative efforts aiming to integrate cryptocurrencies into the state’s financial framework. This proactive stance, spearheaded by visionary lawmakers, marks a significant shift, potentially setting a precedent for other states looking to harness the innovative power of blockchain technology. The discussion around Ohio Crypto Legislation is no longer just theoretical; it’s becoming a tangible reality that could redefine how public funds are managed and invested. Understanding the Groundwork: Ohio’s Cryptocurrency Tax Exemption Before delving into the ambitious plans for state investments, it’s crucial to understand the foundational steps Ohio has already taken. The recent passage of House Bill 116 represents a pivotal moment, providing a clear signal of the state’s crypto-friendly intentions. This bill introduces a significant Cryptocurrency Tax Exemption , specifically for transactions under $200. While seemingly modest, its implications are far-reaching: Encouraging Micro-Transactions: By exempting small crypto transactions from capital gains tax, the bill removes a significant barrier for everyday use, making it easier for Ohioans to use digital assets for minor purchases without complex tax calculations. Boosting Adoption: This exemption can foster broader adoption of cryptocurrencies by reducing friction for new users and small businesses experimenting with crypto payments. Regulatory Clarity: It provides a degree of regulatory clarity, demonstrating that Ohio is willing to adapt its tax laws to accommodate digital currencies, a move often sought by the crypto community. Signaling Intent: More importantly, it acts as a legislative precursor, indicating a broader state strategy to embrace digital assets rather than shying away from them. This initial step has laid the groundwork for more ambitious proposals, demonstrating Ohio’s commitment to creating an environment conducive to cryptocurrency innovation and usage. The Game Changer: House Bill 18 and State Crypto Investments Building on the momentum of HB 116, Ohio Representative Steve Demetriou, a key proponent of both bills, is now pushing forward with House Bill 18. This proposed legislation is truly groundbreaking, aiming to authorize the state treasurer to engage in State Crypto Investments . This isn’t just about allowing individuals to use crypto; it’s about the state itself allocating a portion of its substantial public funds into the burgeoning digital asset market. Specifically, HB 18 proposes allowing up to 10% of select public funds to be invested in major cryptocurrencies by market cap. This targeted approach suggests a focus on established, less volatile (comparatively) digital assets like Bitcoin (BTC) and Ethereum (ETH), which represent the largest and most liquid portions of the crypto market. The implications are profound: Diversification of Public Portfolios: Introducing digital assets could offer a new avenue for diversification, potentially reducing overall portfolio risk by adding uncorrelated assets. Potential for Higher Returns: Cryptocurrencies, while volatile, have historically offered significantly higher returns than traditional asset classes, presenting an opportunity for growth in state funds. Institutional Adoption: This move would mark a significant step in institutional adoption of cryptocurrencies, lending further legitimacy to the asset class. Strategic Positioning: Ohio would join a select few entities globally exploring direct crypto investments for public coffers, positioning itself as a leader in financial innovation. The authority granted to the state treasurer underscores the trust placed in a professional’s ability to navigate this new financial frontier, making informed decisions on behalf of Ohio’s citizens. Why Consider Public Funds Crypto Investments? The Potential Benefits The decision to explore Public Funds Crypto investments isn’t made lightly. Proponents argue that the potential benefits far outweigh the perceived risks, especially when managed prudently. Here’s why Ohio might be taking this bold step: Enhanced Returns for State Funds: In an era of low interest rates and fluctuating traditional markets, cryptocurrencies offer a compelling opportunity for substantial capital appreciation. Even a small allocation could significantly boost returns for pension funds, educational endowments, or other state-managed portfolios, ultimately benefiting taxpayers. Economic Development and Innovation: By embracing digital assets, Ohio signals its openness to blockchain technology and the broader fintech industry. This can attract crypto businesses, startups, and skilled talent to the state, fostering job creation and economic growth within the innovation sector. Future-Proofing the Economy: The global financial landscape is rapidly evolving. By actively participating in the digital asset space, Ohio can gain valuable experience and insights, preparing its economy for a future where digital currencies and blockchain play a more central role. Diversification and Risk Management: While volatile, cryptocurrencies can act as a diversifier due to their low correlation with traditional assets like stocks and bonds. A well-managed, small allocation can potentially enhance portfolio resilience and overall risk-adjusted returns. These potential advantages highlight a forward-thinking approach aimed at securing Ohio’s financial future and cementing its position as a hub for technological and financial innovation. Navigating the Risks: Challenges for State Funds Crypto While the allure of high returns and innovation is strong, investing Public Funds Crypto also comes with inherent challenges and risks that must be meticulously managed. Any decision to invest taxpayer money in a relatively new and volatile asset class demands rigorous due diligence and robust safeguards. Market Volatility: Cryptocurrencies are known for their extreme price fluctuations. A 10% allocation, while seemingly small, could still expose state funds to significant losses if not managed with extreme caution and clear risk parameters. Regulatory Uncertainty: Despite recent clarity, the broader regulatory landscape for cryptocurrencies in the U.S. remains fragmented and evolving. Future federal or state regulations could impact the legality, taxation, or operational aspects of these investments. Security and Custody Concerns: Securing large sums of digital assets requires specialized expertise and robust infrastructure to protect against hacks, theft, and other cyber threats. The custody solutions for institutional-grade crypto investments are complex and critical. Public and Political Scrutiny: Investing public money in cryptocurrencies is likely to face scrutiny from taxpayers, political opponents, and media. Transparency, accountability, and clear communication about the investment strategy and performance will be paramount. Liquidity Challenges: While Bitcoin and Ethereum are highly liquid, converting large institutional holdings back into fiat currency without impacting market prices requires careful execution. Addressing these challenges effectively will be key to the successful implementation of House Bill 18 and ensuring the long-term viability of Ohio’s crypto investment strategy. Lessons from Other States: A Glimpse into Digital Asset Adoption Ohio isn’t operating in a vacuum when it comes to exploring digital assets. Several other states and municipalities have already dipped their toes into the crypto waters, offering valuable lessons and precedents. For instance: Miami, Florida: Mayor Francis Suarez has been a vocal proponent of crypto, pushing initiatives like MiamiCoin to generate revenue for the city and exploring paying city employees in Bitcoin. Texas: The state has become a hub for Bitcoin mining due to its energy resources and favorable regulatory environment, attracting significant investment from crypto companies. Some pension funds have also explored indirect exposure to crypto through investment firms. Wyoming: Known for its progressive blockchain legislation, Wyoming has enacted laws to provide regulatory clarity for digital assets, including special purpose depository institutions (SPDIs) for crypto companies. While direct State Crypto Investments in public funds are still rare at the state level, these examples demonstrate a growing trend of governmental entities engaging with the crypto ecosystem in various capacities. Ohio’s approach with House Bill 18 could set a new benchmark for direct investment, moving beyond just fostering a crypto-friendly environment to actively participating in the market. What Does This Mean for Ohio’s Future? Actionable Insights The progression of Ohio Crypto Legislation , particularly House Bill 18, holds significant implications for various stakeholders: For Ohio Citizens: Potentially better-performing state funds could lead to improved public services or more stable pension plans. It also signifies Ohio’s commitment to being at the forefront of financial innovation. For Businesses: Crypto-related businesses might find Ohio an increasingly attractive location due to its progressive stance, potentially leading to new jobs and investment opportunities within the state. The tax exemption for small transactions also simplifies operations for businesses accepting crypto. For the Broader Crypto Industry: Ohio’s move could serve as a powerful endorsement of digital assets, encouraging other states and institutional investors to consider similar strategies, further legitimizing the asset class on a national scale. For Lawmakers and Policy Makers: It highlights the need for a nuanced understanding of digital assets and the importance of crafting legislation that balances innovation with prudent risk management. This initiative isn’t just about financial gains; it’s about positioning Ohio as a leader in the digital economy, ready to embrace the technological shifts that are reshaping global finance. The Road Ahead for Ohio Crypto Legislation While the momentum behind House Bill 18 is clear, its journey to becoming law will involve rigorous debate, detailed financial analysis, and careful consideration of implementation strategies. Key aspects that will need to be addressed include: Defining “Major Cryptocurrencies”: While generally understood to mean Bitcoin and Ethereum, the bill will need precise language to avoid ambiguity and ensure compliance. Risk Management Frameworks: Establishing clear guidelines for risk assessment, diversification within the crypto allocation, and loss limits will be crucial. Custody Solutions: Identifying secure and compliant institutional-grade custodians for the digital assets will be a primary concern. Performance Benchmarks and Reporting: Transparent mechanisms for tracking and reporting the performance of these investments will be essential for accountability. The passage of House Bill 18 would not only be a landmark achievement for Representative Demetriou but also a testament to Ohio’s pioneering spirit in navigating the complexities and opportunities of the digital age. It represents a bold step towards a future where digital assets are integrated into the fabric of traditional finance, starting right in the heart of the Midwest. Conclusion: Ohio’s Ambitious Leap into Digital Assets Ohio stands at the precipice of a significant financial evolution. With the passage of the Cryptocurrency Tax Exemption bill and the ambitious proposal of House Bill 18 to enable State Crypto Investments , the state is making a clear statement: it is ready to embrace the future of finance. These legislative efforts, championed by Representative Steve Demetriou, are designed not just to foster innovation but also to potentially unlock new avenues for growth and diversification for Public Funds Crypto . While challenges remain, Ohio’s proactive approach could set a powerful precedent for how states manage their financial resources in an increasingly digital world. The journey of House Bill 18 Ohio will be closely watched, as it holds the potential to reshape not only the state’s financial landscape but also influence the broader conversation around institutional adoption of digital assets across the nation. To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin and Ethereum institutional adoption. This post Ohio Crypto Legislation: Unlocking Potential for State Funds with Bold Digital Asset Investments first appeared on BitcoinWorld and is written by Editorial Team
The head of the FHFA said his agency is considering how Bitcoin is counted in qualifying for a mortgage.
Bitcoin’s price moves closer to its all-time high, but liquidity shortage could trigger a breakout toward $165,000.
US President Donald Trump harshly criticizes FED Chairman Jerome Powell at every opportunity. President Trump, who had previously called Powell an idiot, reiterated this rhetoric and targeted Powell again. Trump harshly criticizes Powell's interest rate policies, while arguing that the economy is in good shape and that interest rate cuts are necessary. At this point, Trump emphasizes that there should be aggressive interest rate cuts to stimulate the economy, while Powell continues to insist on keeping interest rates unchanged due to concerns about inflation and instability caused by tariffs. Powell became Trump's target with this attitude, and Trump called Powell an idiot in his speech today. “Fed Chairman Jerome Powell, I think, is a very stupid person. He has a low IQ for the job he does. I actually think he's a very stupid person. We'll be paying for him for years! We'll be paying 2 points or 3 points more on the debt! 3 points means $900 billion a year! He has a low IQ for what he does. Because he didn't want to just lower the interest rate instead of paying $900 billion!” Donald Trump also stated that he has candidates in mind to replace the Fed Chair. At this point, Trump said he was considering a candidate to replace the Fed chair and had even begun interviews with candidates. He added that he had interviewed three or four people for the next Fed chair. *This is not investment advice. Continue Reading: FED Chairman Jerome Powell Seems the Way! US President Donald Trump Targeted Powell, Called Him "Stupid" Again! – "I've Started Talks!"
Crypto ATMs in Australia are officially under the microscope, and what regulators found is less “future of finance” and more “scammers are on the way.” In a nationwide sting operation, Australian Transaction Reports and Analysis Centre (AUSTRAC) identified 90 top crypto ATM users, and they weren’t whales or tech nerds. The report mentions that these users were mostly scam victims, money mules, and a handful of unwitting offenders unknowingly funneling dirty money through those flashing digital booths. This comes in when US states are tightening rules on crypto ATMs to curb rising scams, as these machines are often used by fraudsters, which allows easy cash-to-crypto conversion. Crypto ATMs turn scam hotspots The investigation, led by AUSTRAC and backed by federal and state police, has revealed that the majority of high-value crypto ATM transactions across the country were linked to scams. This involves romance scams, investment scams, and frauds done on the basis of different promises. As per the report , one woman in her 70s lost over $430,000 after getting duped by a combo of fake love and fake gains. However, there is no way of recovering the looted money. The task force tracked another woman in her 70s who sent $200K to a “trading firm” that vanished faster than your trust in the internet. The lady got conned after seeing what she thought was a legitimate advertisement about a firm that gave her hopes of massive returns. AUSTRAC CEO Brendan Thomas didn’t mince words and stated that “We suspected that a large volume of crypto ATM transactions were probably illicit, but almost all the transactions we looked into were victims, not villains.” The reality is bleak as these machines, which were once seen as futuristic gateways into the crypto economy, are now being hijacked as tools in emotionally manipulative heists that leave victims broke and helpless. Cash-to-crypto scams soar The Australian watchdog has already dropped the hammer by introducing tighter regulations . This included a $5,000 cap on ATM transactions, mandatory scam warnings, enhanced ID checks, and better surveillance. Thomas advised that if one is considering using a crypto ATM and someone else asks you to deposit cash into one of these machines, think twice. Sending money to a wallet you don’t control likely means you’ll lose it. On the other side, States across the US are rolling out strict new laws to crack down on crypto kiosks. A report suggests that from 2020 to 2023, crypto ATM-related fraud ballooned nearly 10 times. The FBI says it got 99% more complaints in 2024, with $247 million in losses tied to these kiosks. Americans aged over 60 are more than three times as likely to get fleeced via a crypto ATM than their younger counterparts. It’s not just the scams, but it’s how they’re engineered. Scammers walk victims through every step, like go to this gas station, scan this code, feed in your cash. Most of these victims have never touched crypto before, and after the scam, they probably never will again. However, the digital assets market is growing day by day. The cumulative crypto market cap surged by more than 2% over the last 24 hours to stand at $3.31 trillion. Bitcoin is trading above $108K at the press time, while Ethereum is hovering around $2,439. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
Bitcoin is creating a new paradigm as an emerging financial asset; several investors are contemplating a shift to adopting the asset for higher returns.
Summary Yieldmax MSTR Option Income Strategy ETF's headline ~100%+ yield is mostly return of capital, not sustainable income, making the high payout misleading for long-term investors. The MSTY fund's synthetic covered call strategy on MicroStrategy Incorporated stock exposes it to significant downside risk, especially given MSTR's Bitcoin-driven volatility. While MSTY has outperformed peers in total return since inception, this is unlikely to be repeatable due to NAV erosion and unsustainable distributions. I do not recommend MSTY for long-term investors seeking sustainable growth; if you must invest, keep exposure minimal due to high risk. The Yieldmax MSTR Option Income Strategy ETF (NYSEARCA: MSTY ) is one of a handful of ETFS that currently offer circa-100% yields. With typical yields between 1% and 5%, triple-digit distributions will surely turn heads. But is it MSTY worth it? Well, before I get into it, I think it’s important to give you a little of my background as it might assist in explaining my thesis. I consider myself a boring, long-term investor. My average holding is over eleven years, and I rarely sell. I buy and hold growth stocks over the long term, as well as quality dividend stocks for income generation, should I ever decide to retire. Most of my positions make up ~1.5 - 2% of my total portfolio, with a few Mag 7 positions taking up 8-9%. I do not invest in crypto - it’s not for me. However, I do like options income strategies like covered calls and cash-secured puts - which is why this article was fun to write. Attractive yields present a salivating opportunity for outsized distributions, if you understand the risks and are willing to take the plunge. MSTY offers an incredible distribution on the surface, but I say it’s mostly smoke and mirrors. Spoiler: I would not recommend MSTY. Let me explain. ETF Profile The YieldMax MSTR Option Income Strategy is one of many ETFs that YieldMax ( YMAX ) currently offers. The company itself went public in late 2022, with its first ETF being the TSLA Option Income Strategy ETF ( TSLY ). Its ETFs focus primarily on income-generating options strategies to generate distributions for its investors. MSTY itself was launched in early 2024 and focuses on selling covered calls on MicroStrategy Incorporated ( MSTR ), now simply Strategy . What’s interesting about this entire setup is Strategy’s business model - it functions less like a traditional tech firm and more like a proxy Bitcoin ( BTC-USD ) holding company, with the vast majority of its balance sheet tied up in cryptocurrency. Strategy Inc Source: Strategy Inc. As of June 25, 2025, Strategy held 592,345 BTC , with an average cost of $70,681 per share, or approximately $41.857 billion in total. Uncovering YieldMax’s MSTY ETF Going back to YieldMax’s MSTY, the fund invests in a combination of long and short calls and short puts to create a synthetic covered call position. To understand the fund’s makeup, we need to first understand what a synthetic long position is, and what synthetic covered calls are. A synthetic long position requires three components: Cash/cash-like asset for collateral Short Put Long Call. The options usually have the same expiration date and strike. The short put allows the investor to participate in the downside, while the long call offers unlimited upside. When combined, the position costs less than directly owning the underlying asset, and carries the same risk as owning the underlying outright. Next, we have the synthetic covered call. With a traditional covered call, the investor sells a call on a stock they already own. The synthetic version allows the investor to sell up to an equal amount of calls against the portfolio’s long calls. Should the short call be assigned, the investor or fund manager can assign the long call position to cover the short call assignment. Since MSTY is selling calls, any volatility in MSTR - and Bitcoin by extension - can be a good thing. Higher volatility means higher premiums, though it comes with higher risk. MSTY Holdings Summary Here’s a complete breakdown of MSTY’s holdings: Options Positions Position Type Strike Price Market Value ( USD ) Portfolio Weight (%) MSTR Long Call $370.01 (Exp. 07/11) $14,927,428.60 0.31% MSTR Short Put $370.01 (Exp. 07/11) -$8,400,115.03 -0.18% MSTR Short Put $370.01 (Exp. 07/18) -$109,305,245.32 -2.30% MSTR Short Put $380.01 (Exp. 07/18) -$61,518,470.66 -1.29% MSTR Short Call $382.50 (Exp. 06/27) -$4,175,000.00 -0.09% MSTR Short Call $385 (Exp 6/27) -$5,862,500.00 -0.12% MSTR Short Call $387.5 (Exp 6/27) -$13,092,750.00 -0.28% MSTR Short Call $390 (Exp 6/27) -$3,416,400.00 -0.07% MSTR Short Call $392.50 (Exp 6/27) -$820,000.00 -0.02% MSTR Long Call $400 (Exp 6/27) $780,000.00 0.02% MSTR Short Call $420 (Exp 6/27) -$195,000.00 0.00% MSTR Short Call $380 (Exp 7/3) -$3,590,000.00 -0.08% MSTR Short Call $390 (Exp 7/25) -$2,675,000.00 -0.06% MSTR Short Call $392.50 (Exp 7/25) -$1,168,750.00 -0.02% MSTR Short Call $395 (Exp 7/25) -$1,018,750.00 -0.02% MSTR Short Call $397.50 (Exp 7/25) -$887,500.00 -0.02% MSTR Long Call $410 (Exp 7/3) $730,000.00 0.02% MSTR Long Call $370 (Exp 7/18) $177,903,812.50 3.74% MSTR Long Call $380 (Exp 7/18) $55,104,000.00 1.16% Cash & Securities Positions Security Name Market Value (( USD )) Portfolio Weight (%) United States Treasury Bill 02/19/2026 $112,447,601.12 2.37% United States Treasury Bill 08/14/2025 $591,975,469.68 12.45% United States Treasury Bill 11/06/2025 $385,386,926.47 8.11% United States Treasury Note/Bond 3% 07/15/2025 $382,337,797.02 8.04% United States Treasury Note/Bond 4.25% 10/15/2025 $638,453,855.82 13.43% United States Treasury Note/Bond 3.875% 01/15/2026 $1,123,742,006.11 23.64% First American Government Obligations Fund 12/01/2031 $61,088,195.28 1.29% Cash & Other $1,424,002,851.14 29.96% Source: YieldMax . MSTY earns premiums by selling options, which serve as its primary source of cash flow. All of its short call positions are short-dated, with the synthetic positions expiring further out. Furthermore, cash and treasury bonds make up a significant portion of MSTY’s holdings. This risk-free collateral supports the option strategy’s collateral requirements and facilitates redemptions. The inherent stability of treasury notes can also serve as a stabilizer against the volatility of MSTR. Strategy Risks Now, for reference, covered calls earn income through selling options, but at the cost of limited upside. That means any strong upward rally for MSTR will not translate to additional distributions for shareholders. Since the ETF’s gains are limited to the strike price of the short calls, extreme rallies can lead to missed upside and costs associated with repositioning the options, especially in synthetic strategies like MSTY’s. If MSTR falls significantly below the strike prices of those puts, the fund could face early assignment or, more realistically, mark-to-market losses due to the increased value of the short puts. These synthetic exposures can behave similarly to being “assigned,” impacting the fund’s net asset value and potentially reducing its ability to generate or maintain distributions during that period. However, I would imagine that management would roll out said positions before that happens, though that would entail additional costs and, again, decrease distributions. Peer Comparison Now, onto the juicy parts. Instead of comparing MSTY to other YieldMax ETFs, I’ll compare it to other ETFs that utilize similar option strategies on MSTR or Bitcoin itself. As an introduction, here are the members of this peer group, along with their respective expense ratios (portfolio fees) and yields. ETF Ticker ETF Name Expense Ratio TTM Yield Inception Date MSTY YieldMax MSTR Option Income Strategy ETF 0.99% 139.46% 2/21/24 YBTC Roundhill Bitcoin Covered Call Strategy ETF 0.96% 45.0% 1/18/24 IMST Bitwise MSTR Option Income Strategy ETF 0.98% 13.93% 4/1/25 BTCC Grayscale Bitcoin Covered Call ETF 0.66% 7.01% 4/2/25 BAGY Amplify Bitcoin Max Income Covered Call ETF 0.65% 2.69% 4/29/25 BCCC Global X Bitcoin Covered Call ETF 0.75% 0.79% 6/3/25 JEPI JPMorgan Equity Premium Income ETF 0.35% 8.32% 5/20/20 Source: Rick Orford. I added the inception date to provide a more comprehensive view of the peer group, as most are new and have not yet completed a full-year distribution cycle. I also added the JPMorgan Equity Premium Income ETF as a more realistic baseline reference for option-driven ETFs. From the chart above, MSTY pays the highest yield out of all the ETFs on a trailing twelve-month basis, even compared to Roundhill Bitcoin Covered Call Strategy ETF, which was launched before MSTY. This makes MSTY a bit of an outlier in terms of income generation, though it comes with outsized risks due to its particular income-generating strategy. But to be fair, we should examine the ETF's price movement for a comprehensive review. YieldMax MSTR Option Income Strategy ETF Price Action & Total Returns MSTY is down 2.55% since its initial public offering in February 2024. Over the same period, its closest peer, YBTC, has lost 7.2%. The remainder of the ETF’s are still very embryonic and choppy. Seeking Alpha NAV and Market Price Now that we've looked at MSTY’s price chart and total return, it’s important to determine how well the fund’s net asset value ((NAV)) has tracked its market price. As per the company’s data, MSTY’s NAV sits at $20.54 as of May 31, 2025. At the time, the closing price was $20.57, meaning the fund was trading at a slight premium. YieldMax Source: YieldMax . Now, small fluctuations between NAV-to-price comparisons are to be expected, especially with a high-yield ETF. However, it’s still reasonably close, which is a positive sign that its arbitrage mechanisms work. Distributions and Total Net Return YieldMax Now, with all that out of the way, let’s highlight arguably the most important aspect of this article: MSTY’s distribution. Since inception, MSTY holders would have received between $1.3356 and $4.213 per unit. However, that only paints a partial picture of your potential benefit as an investor. We need to look at total returns to get a better picture. Below is a chart outlining total returns, assuming an investor bought MSTY at its all-time high date (March 28, 2024), and held it to today. And I’ll compare it with YBTC and JEPI - the only ones in the peer group that were active during that time. ETF Price on Mar 28, 2024 Current Price Capital Gain/Loss Distributions Received Net Total Return ($) Net Total Return (%) MSTY $42.99 $21.05 –$21.94 $38.37 $16.93 +39.38% YBTC $55.16 $45.58 –$9.58 $24.94 $15.36 +27.85% JEPI $57.86 $56.57 –$1.29 $5.70 $4.41 +7.62% Source: Rick Orford. So, even after a dramatic 49% price drop with MSTY, an investor who bought at MSTY at its peak would still be up by almost $17 per share, or around 39% of their initial investment. My Concerns Around Return of Capital MSTY’s latest distribution of $1.4707 was 97.45% return of capital ((ROC)) and just 2.55% income. In other words, $97.45 of every $100 in distributions paid was the investor's own money. It’s more or less in line with a majority of its peer group, except for Bitwise MSTR Option Income and possibly JEPI (due to its more diversified nature). ETF Ticker Latest Distribution % Return of Capital (ROC) % Income MSTY (YieldMax MSTR Option Income) $1.4707 97.45% 2.55% YBTC (Roundhill Bitcoin Covered Call) $0.20 100% 0% IMST (Bitwise MSTR Option Income) $7.01 0% 100% BTCC (Grayscale Bitcoin Covered Call) $0.9449 100% 0% BAGY (Amplify Bitcoin Max Income Covered Call) $1.4613 96% 4% BCCC (Global X Bitcoin Covered Call)* $0.14 (CAD) No Data (Released at year-end) No Data (Released at year-end) JEPI (JPMorgan Equity Premium Income) $0.5400 No Data No Data Source: Rick Orford. Now, ROC isn't inherently bad. In fact, it can be tax-efficient in the short term as ROC distributions are simply your own money given back to you, reducing your cost basis, and deferring tax liability until you sell the ETF. However, when most of MSTY’s distributions are comprised of ROC instead of actual income for most of the time, it raises significant concerns about the sustainability of these distributions. While this can be highly effective in the short term, especially during periods of high volatility, it means the ETF often returns premium income (or capital) to shareholders rather than growing the underlying NAV. Any negative market movement, such as MSTR underperforming or its positions incurring mark-to-market losses, can accelerate NAV erosion, which in turn may reduce the fund’s ability to maintain future payouts. In that sense, MSTY’s distributions are less of a yield from earnings and more of a structured return of capital. Verdict So, yes, MSTY’s high yield and relatively stable NAV might make compelling selling points, but its prospects are not as rosy as they appear on the surface. We can’t ignore the fact that any investor who bought at its peak is still up by $16, thanks to its triple-digit yields and despite the deep price downturn. But is this repeatable? And how long would it take for the losses to outpace the returns and eat away at your capital? Remember, in 2021 Bitcoin hit $60,000, then experienced a significant decline and was trading at just above $16,000 by the end of 2022. During the same period, MSTR experienced a price decline of around 70% to 80%. And even though some people might like to think that “it's only up from here,” Bitcoin is notoriously volatile and often goes through multi-year boom-and-bust cycles. If that happens, MSTY’s synthetic long exposure would place it directly in the line of fire. Deep-in-the-money short puts and collapsing long call values would result in mark-to-market losses and steep NAV erosion. That would likely force the fund to either cut distributions sharply or continue paying out return of capital while its NAV collapses and its ability to recover evaporates. And that’s my core issue with MSTY - it’s not built for long-term, multi-year sustainable growth, and it certainly doesn’t align with my investment preferences. It’s structured more for income extraction, not capital appreciation, and that income is highly dependent on favorable volatility conditions, which never last forever. That’s why I can’t recommend this fund. However, if you do buy the ETF, I’d suggest keeping your exposure low. That way, when the tide inevitably turns, you don’t lose a big chunk of your portfolio.
As geopolitical developments continue to impact global markets, the cryptocurrency space remains highly reactive. Earlier this week, Bitcoin (BTC) dipped below the $100,000 mark amid heightened tensions in the Middle East. However, with tensions easing, market optimism rebounded swiftly, propelling BTC through multiple technical resistance levels. The rally underscored Bitcoin’s strength as “digital gold.” Amid this volatile market, GoldenMining, a leading global intelligent cloud mining platform, reported that its investors earned an average of $9,800 per person in daily profits during the surge, demonstrating the platform’s ability to capitalize on market swings. GoldenMining Cloud Mining: Simplifying Profitability for Everyday Traders GoldenMining has optimized its AI-driven cloud mining services under a ‘Hash Power as a Service’ (HaaS) model. Backed by 13+ data centers and multi-currency support, it currently supports BTC, Litecoin (LTC), and Dogecoin (DOGE)—among the most active and profitable mining options on the platform. Technology, Security, and Performance at the Core GoldenMining’s continued success lies in its technology and commitment to user performance: AI Intelligent Computing Engine The proprietary ‘Smart Computing Chain’ analyzes 100,000+ market data points hourly using deep learning and parallel computing. Hash power is dynamically allocated to the most profitable assets in real time. AI Hash Rate Scheduling Adjusts for BTC network difficulty and mining pool fees to optimize hash power usage and maximize returns. Fully Automated Income System Once contracts are active, earnings are automatically deposited into users’ wallets—no manual action required. Flexible Contracts for All Investors Contract durations include 5-day, 12-day, 25-day, 30-day, and 45-day terms. Profit Reinvestment Option Users can enable automatic reinvestment of daily earnings for compounding growth. Multi-Currency Support BTC contracts can be funded using USDT, DOGE, ETH, and BNB with real-time exchange and transparent settlement. How to Get Started GoldenMining makes it simple to begin earning: Register an Account Sign up at GoldenMining.com and claim a $15 new user bonus . Choose a Mining Plan Select from a variety of contract terms based on your budget and goals. Activate and Start Mining The system begins mining automatically using optimized hash power. Receive Daily Payouts Profits are settled and distributed daily, with funds available for withdrawal or reinvestment. Sample Contracts & Estimated Profits Contract Price Estimated Profit Total Return Elphapex DG1+ $100 $6 $106 Bitmain Antminer S23 Hyd $650 $41.27 $691.27 Antminer L9 17GH $1,800 $280.8 $2,080.8 Antminer L9 16GH $4,500 $1,518.75 $6,018.75 ElphaPex DG Hydro 1 $7,800 $3,276 $11,076 Elphapex DG2 $12,000 $8,100 $20,100 Elphapex DG2+ $28,000 $22,680 $50,680 Profits are credited the next day. Users can withdraw once their balance reaches $100 or reinvest for increased earnings. CEO Statement A GoldenMining spokesperson noted that thanks to the platform’s proprietary AI engine, early adopters have seen annualized net returns exceeding 500%, underscoring both the profitability and resilience of the system. About GoldenMining Headquartered in London, UK, GoldenMining serves over 1.5 million users globally, with daily contract settlements surpassing $100 million. As the digital economy matures, GoldenMining stands out as a key driver of sustainable and intelligent crypto investment. Join GoldenMining Toda Unlock smarter, more stable returns from cryptocurrency. Visit GoldenMining.com Contact: info@GoldenMining.com Disclaimer: This is a paid release. The statements, views and opinions expressed in this column are solely those of the content provider and do not necessarily represent those of NewsBTC. NewsBTC does not guarantee the accuracy or timeliness of information available in such content. Do your research and invest at your own risk.
TruSpine Technologies, a UK-listed medical device company, has announced a strategic move to include Bitcoin (BTC) in its treasury reserves, signaling a shift in corporate asset management. This initiative reflects