Bitwise is liquidating six crypto option ETFs that offered 25% payouts while returning investors’ own capital
Bitwise is liquidating six option-income ETFs: ICOI, IMRA, IMST, IGME, ICRC, and IETH. July 31 was the last trading day, and investors still holding shares as of Aug. 3 will not sell on an exchange; they will receive an automatic cash redemption at the fund’s final NAV. Bitwise expects the final NAV on Aug. 7 and cash proceeds around Aug. 10. The funds tracked option-income strategies linked to Coinbase, Marathon Digital, Strategy, GameStop, Circle, and Ethereum. SEC filings say shareholders will generally realize a capital gain or loss, and a distribution may occur before or with redemption. Before liquidation, Bitwise reported high annualized distribution rates but 0% 30-day SEC yields, reflecting different metrics. It also estimated much of the payouts as return of capital in recent notices. Combined pre-liquidation assets were about $23.1 million, but final liquidation values and the board’s reason for closing the funds were not disclosed.
