Bitwise launches a Bitcoin covered-call options strategy for Lombard to offer institutional-grade yield on onchain BTC.
DeFi & Yields ·
Bitwise Asset Management has launched a Bitcoin covered-call options strategy designed for Lombard, extending institutional-grade yield management capabilities to onchain Bitcoin holdings. The partnership brings structured options exposure to participants seeking productive returns on their BTC positions through a systematic covered-call framework.
Covered-call strategies involve selling call options against held Bitcoin to generate premium income, a technique traditionally used by institutional investors to enhance yields on underlying assets. By integrating this approach onchain via Lombard, the arrangement aims to offer market participants a regulated, managed pathway to implement this strategy without requiring direct options trading expertise or infrastructure.
Key details about the strategy's mechanics, fee structure, and minimum allocation thresholds remain unclear. It is also not yet specified whether this offering will be available through existing Bitwise products or as a standalone vehicle, or what custody and settlement arrangements will govern the onchain execution.