Bitwise Investment has introduced the market’s first exchange-traded fund (ETF) specifically focused on GameStop Corp. (GME), employing a covered call strategy.
The new ETF, trading under the ticker IGME, utilizes options strategies tied to GameStop instead of holding the stock directly. This approach is designed to provide investors with exposure to the gaming sector’s inherent volatility while simultaneously generating consistent income through options premiums.
This income mechanism aims to mitigate risk and reduce overall volatility compared to owning GameStop stock outright. Bitwise positions IGME as a significant innovation within the ETF market, offering diversification specifically targeting the convergence of gaming and crypto investment trends.
The fund targets investors seeking alternative yield opportunities who wish to gain thematic exposure without facing the full volatility associated with direct stock ownership. This launch underscores the ongoing intersection of traditional financial products like covered call strategies with emerging market dynamics.