IncomeSTKd 1x US Stocks & 1x Bitcoin Premium ETF (ISSB)

Overview

ISSB is an investment strategy designed to achieve total return by offering dual leveraged exposure to both bitcoin and large-cap US equities. The fund aims for a beta of approximately 1.0 for each asset class, combining the returns from both equities and bitcoin by utilizing an overlay strategy for generating income through options premiums. To meet its target beta levels, ISSB invests in a variety of investment vehicles, including bitcoin futures, ETFs, ETPs, and options linked to bitcoin indices, as well as equity futures, ETFs, ETPs, and various derivatives. The approach allows an investor to effectively have $1 exposure to bitcoin and an additional $1 exposure to stocks for every dollar invested. The fund frequently rolls over futures contracts, ensuring consistent exposure to its underlying assets. Additionally, collateral investments—which may include US Treasury bills, money market funds, and cash equivalents—typically account for 10% to 65% of its net assets. The fund's realized beta usually floats between 0.8 and 1.2 for each asset class due to market fluctuations. There is also the possibility for the fund to invest up to 25% of its assets in a wholly owned subsidiary located in the Cayman Islands.

Products and Services

• Bitcoin Futures: The fund invests in bitcoin futures contracts to gain exposure to the price fluctuations of bitcoin, allowing for leveraged investment and targeted returns based on market movements.
• ETFs (Exchange-Traded Funds): ISSB utilizes bitcoin and equity ETFs as part of its core strategy to diversify its holdings while still maintaining leverage and exposure within specified investment parameters.
• ETPs (Exchange-Traded Products): These products represent secured financial instruments linked to the price of bitcoin, offering an accessible means for the fund to gain exposure without holding the actual currency.
• Options on Bitcoin Indices: Employing options strategy allows the fund to generate income through premiums while also providing additional ways to hedge against market volatility.
• Equity Futures: The fund leverages equity futures contracts to secure investments in large-cap US equities, allowing for swift adjustments to the portfolio in response to market changes.
• Money Market Funds: A portion of net assets is allocated to money market funds to manage liquidity and ensure that there are sufficient cash equivalents to cover potential margin calls on leveraged positions.
• Collateral Investments: These include US Treasury bills and cash equivalents, which provide a stable, secure base for the fund’s leveraged strategies and help in maintaining target beta levels.
• Wholly Owned Cayman Islands Subsidiary: The potential to invest up to 25% of assets in this subsidiary offers regulatory advantages and additional flexibility in asset management.