The landscape of digital asset investing is shifting from simple “buy and hold” strategies toward sophisticated, multi-asset products. VistaShares has officially entered the fray with the launch of BTYB, an actively managed ETF listed on the New York Stock Exchange. This fund offers a unique proposition: the stability of US government debt paired with the high-octane volatility of Bitcoin—processed through an income-generating options strategy.
How the BTYB ETF Balance Works: Treasurys Meets Synthetic Calls
At its core, BTYB is a “best of both worlds” play for investors who want crypto exposure without the stomach-churning swings of the spot market. The fund allocates approximately 80% of its assets to US Treasury securities. This serves as the bedrock of the portfolio, providing a low-risk foundation and a steady baseline yield.
The remaining 20% of the portfolio is where things get interesting. Rather than buying Bitcoin directly, BTYB employs a synthetic covered call strategy. By using call options on BlackRock’s iShares Bitcoin Trust (IBIT), the fund creates artificial exposure to Bitcoin’s price movements. It then “sells” options against that exposure to collect premiums.
This structure has a specific trade-off: investors give up some of Bitcoin’s “moonshot” upside in exchange for weekly income distributions. VistaShares aims for BTYB to deliver roughly double the yield of a five-year Treasury note, though they caution that these payouts depend entirely on market volatility and interest rate shifts.
The Rise of Crypto Index Funds and Multi-Asset Portfolios
The launch of BTYB is part of a much larger trend of “Crypto 2.0” financial products. We are moving past the era where an ETF only held one token. Following the SEC’s approval of spot crypto index ETFs in late 2024, issuers like Hashdex and Franklin Templeton have pioneered funds that hold both Bitcoin and Ether.
Other firms are getting even more creative with their “thematic” baskets:
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Bitwise recently launched the Proficio Currency Debasement ETF, which hedges against inflation by mixing Bitcoin with precious metals and mining stocks.
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21Shares introduced the FTSE Crypto 10 Index ETFs, offering diversified exposure to a broad basket of large-cap digital assets.
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Hashdex has even expanded its index to include assets like Solana (SOL), XRP, and Stellar (XLM).
As the market matures, these “hybrid” ETFs are becoming a bridge for traditional investors. They provide a way to dip a toe into the crypto ecosystem while maintaining the familiar guardrails of income-focused, regulated investment vehicles.
