Roundhill Investments Announces YBTC and YETH Distributions for December 31, 2024
Rhea-AI Summary
Roundhill Investments has announced ETF distributions for December 31, 2024, for its Bitcoin and Ether Covered Call Strategy ETFs. The YBTC will distribute $1.632167 per share with a 30-Day SEC yield of 2.97%, while YETH will distribute $2.576753 per share with a 3.04% yield. Both funds have a Gross Expense Ratio of 0.95% and aim to make weekly distributions, though this isn't guaranteed. The ex-date is set for December 30, 2024, with payment on December 31, 2024.
The company notes that distributions may exceed the Funds' income and gains for the taxable year, and any excess distributions will be treated as return of capital. They also caution that favorable market conditions driving current distribution rates may not be sustainable.
Positive
- YBTC offering $1.632167 per share distribution
- YETH offering higher distribution at $2.576753 per share
- Competitive SEC yields: 2.97% for YBTC and 3.04% for YETH
Negative
- High expense ratio of 0.95% for both funds
- Distributions may exceed actual fund earnings
- Potential return of capital in distributions indicates possible unsustainable payout levels
News Market Reaction
On the day this news was published, YBTC declined 1.99%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Fund Name | Ticker | Distribution | 30-Day SEC Yield** | Ex-Date | Pay Date |
Roundhill Bitcoin Covered Call Strategy ETF | YBTC | 2.97 % | 12/30/24 | 12/31/24 | |
Roundhill Ether Covered Call Strategy ETF | YETH | 3.04 % | 12/30/24 | 12/31/24 |
The 30-Day SEC Yield** (as of 11/30/24) for the Roundhill Bitcoin Covered Call Strategy ETF and for the Roundhill Ether Covered Call Strategy ETF are
The Gross Expense Ratio for YBTC and YETH is
The performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Returns less than one year are not annualized. For the most recent standardized and month-end performance, please click here: YBTC, YETH.
The Funds currently expect, but do not guarantee, to make distributions on a weekly basis. Distributions may exceed the Funds' income and gains for the Funds' taxable year. Distributions in excess of the Funds' current and accumulated earnings and profits will be treated as a return of capital. Distribution rates caused by unusually favorable market conditions may not be sustainable. Such conditions might not continue to exist and there should be no expectation that this performance will be repeated in the future. Please see the Supplemental Tax Information section of the webpage for more information on the distribution composition including the estimated return of capital.
**30-Day SEC Yield: Yield calculation that reflects the dividends and interest earned during the period after the deduction of the fund's expenses. It is also referred to as the "standardized yield".
About Roundhill Investments:
Founded in 2018, Roundhill Investments is an SEC-registered investment advisor focused on innovative exchange-traded funds. Roundhill's suite of ETFs offers distinct and differentiated exposures across thematic equity, options income, and trading vehicles. Roundhill offers a depth of ETF knowledge and experience, as the team has collectively launched more than 100+ ETFs including several first-to-market products. To learn more about the company, please visit roundhillinvestments.com.
This material must be preceded or accompanied by a prospectus.
Click here for the YBTC prospectus.
Click here for the YETH prospectus.
All investing involves risk, including the risk of loss of principal. There is no guarantee the investment strategy will be successful. The funds faces numerous risks, including options risk, liquidity risk, market risk, cost of futures investment risk, clearing broker risk, commodity regulatory risk, futures contract risk, active management risk, active market risk, clearing broker risk, credit risk, derivatives risk, legislation and litigation risk, operational risk, trading issues risk, valuation risk and non-diversification risk. For a detailed list of fund risks see the prospectus.
Covered Call Strategy Risk. A covered call strategy involves writing (selling) covered call options in return for the receipt of premiums. The seller of the option gives up the opportunity to benefit from price increases in the underlying instrument above the exercise price of the options, but continues to bear the risk of underlying instrument price declines. The premiums received from the options may not be sufficient to offset any losses sustained from underlying instrument price declines, over time. As a result, the risks associated with writing covered call options may be similar to the risks associated with writing put options. Exchanges may suspend the trading of options during periods of abnormal market volatility. Suspension of trading may mean that an option seller is unable to sell options at a time that may be desirable or advantageous to do.
YBTC
Bitcoin Futures ETF Risks. The Fund will have significant exposure to the Bitcoin Futures ETF through its options positions that utilize the Bitcoin Futures ETF as the reference asset. Accordingly, the Fund will subject to the risks of the Bitcoin Futures ETF, set forth below.
Bitcoin Risk. Bitcoin is a relatively new innovation and the market for bitcoin is subject to rapid price swings, changes and uncertainty. The further development of the Bitcoin network and the acceptance and use of bitcoin are subject to a variety of factors that are difficult to evaluate. The slowing, stopping or reversing of the development of the Bitcoin network or the acceptance of bitcoin may adversely affect the price of bitcoin. Bitcoin is subject to the risk of fraud, theft, manipulation or security failures, operational or other problems that impact the digital asset trading venues on which bitcoin trades. The Bitcoin blockchain may contain flaws that can be exploited by hackers. A significant portion of bitcoin is held by a small number of holders sometimes referred to as "whales." Transactions of these holders may influence the price of bitcoin.
Digital Asset Industry Risk. The digital asset industry is a new, speculative, and still-developing industry that faces many risks. In this emerging environment, events that are not directly related to the security or utility of the Ethereum blockchain or the Bitcoin blockchain can nonetheless precipitate a significant decline in the price of ether and bitcoin.
Digital Asset Regulatory Risk. Digital asset markets in the
New Fund Risk. The fund is new and has a limited operating history.
Roundhill Financial Inc. serves as the investment advisor. The Funds are distributed by Foreside Fund Services, LLC which is not affiliated with Roundhill Financial Inc.,
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SOURCE Roundhill Investments
FAQ
What is the distribution amount for YBTC ETF on December 31, 2024?
What is the 30-day SEC yield for YBTC as of November 30, 2024?
How often does YBTC make distributions to shareholders?
What is the expense ratio for YBTC ETF?
When is the ex-date for YBTC's December 2024 distribution?
