Emre Yumlu 
Bitwise, a company well-known for its crypto-focused investment products, has unveiled its latest fund: the Bitwise Ethereum Option Income Strategy ETF (IETH). This innovative ETF provides investors with a way to gain income-oriented exposure to Ethereum (ETH), the world’s second-largest cryptocurrency.
What Is $IETH?
$IETH is designed to give investors indirect exposure to Ethereum, without directly holding the asset itself. The primary goal of the fund is to generate high monthly income, while also allowing investors to capture limited upside potential from Ethereum’s price growth.
Instead of holding ETH directly, the strategy revolves around selling call options on ETPs (exchange-traded products) that hold Ethereum. This approach creates a consistent stream of option premiums, which serve as income for investors.
Introducing $IETH, the Bitwise Ethereum Option Income Strategy ETF.$IETH offers investors income-focused exposure to ETH (ether), the world’s second-largest crypto asset and the force behind some of the fastest-growing sectors in crypto, like stablecoins and tokenization.
By… pic.twitter.com/C1TR3Fm18G
— Bitwise (@BitwiseInvest) October 2, 2025
How the Strategy Works
The fund is managed daily by Bitwise’s experienced portfolio team, bringing years of expertise in both crypto markets and derivatives. The strategy relies on a widely used options method: the covered call approach.
Key aspects include:
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Monthly Income Generation: Premiums from call options provide steady cash flow.
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Capped Upside Exposure: Investors benefit from ETH price increases, but only up to a certain limit.
The trade-off is clear—while the fund provides income, it also limits how much investors can gain if Ethereum’s price rallies significantly.
Why Ethereum?
Bitwise emphasizes Ethereum’s central role in the crypto ecosystem. Often referred to as the most popular blockchain platform, Ethereum boasts the largest community of developers and applications.
Its ecosystem powers some of the fastest-growing areas in crypto, including:
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Stablecoins
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Tokenization of assets
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Decentralized finance (DeFi)
This growth has made Ethereum a cornerstone of blockchain innovation, making it an attractive asset for income strategies like IETH.
What Investors Gain
With $IETH, investors have the opportunity to:
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Gain exposure to Ethereum’s long-term growth, indirectly
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Earn regular income through option premiums
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Diversify with an actively managed ETF built around crypto derivatives
However, it’s important to note that the fund does not directly hold ETH or shares of ETH-based funds. Instead, it offers exposure only through its options strategy.
Understanding the Risks
As with any investment, IETH comes with risks:
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If Ethereum’s price drops, option income may not offset the losses.
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In a strong rally, covered call strategies limit the potential upside.
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Option premiums may fluctuate and not always provide sufficient income.
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Investors still face the possibility of capital loss.
Bitwise makes it clear that while IETH is designed for income, it should be approached with an understanding of these trade-offs.
*This content does not constitute investment advice.
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