(Bloomberg) -- One of 2023’s most popular strategies in the $8 trillion exchange-traded fund industry is coming to the crypto market.

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The Roundhill Bitcoin Covered Call Strategy ETF begins trading on Thursday under the ticker YBTC, according to a press release. The actively managed fund tracks the performance of Bitcoin via the futures-backed ProShares Bitcoin Strategy ETF (BITO), on which it will also sell out-of-the-money calls. That process generates additional income in exchange for giving up some of Bitcoin’s upside exposure, risking underperformance to the cryptocurrency itself.

Covered call strategies were popularized in the ETF arena by the explosive growth of the $31 billion JPMorgan Equity Premium Income ETF (JEPI), which invests in low-volatility stocks and employs a call-writing strategy. JEPI became the largest actively managed ETF last year as investors — rattled by the Federal Reserve raising interest rates — sought shelter in the fund’s reliable payouts. Roundhill is attempting to replicate that success among crypto investors as well.

“The fund should exist because it combines two opportunities. One is the opportunity to participate in an exciting new asset class, and two, it provides the potential for stable income generation,” said David Mazza, chief strategy officer at Roundhill Financial. “If the implied volatility of Bitcoin is high, then income generation is expected to be high.”

YBTC debuts as the first Bitcoin covered call strategy to launch in the ETF wrapper. Grayscale Investments applied for a covered call ETF last week, a day after the US Securities and Exchange Commission approved the first US-listed spot Bitcoin ETFs. The fund “seeks to provide and deliver current income while also providing participation in the price return of Grayscale Bitcoin Trust,” according to the filing.

While YBTC may appeal to the more cautious crypto-curious investor, the fact that it creates a “yield” for Bitcoin should also tempt the pure-play crypto crowd, Mazza said. While tokens such as Ether generate payouts through a mechanism known as staking, Bitcoin doesn’t have that process.

“You can’t earn a yield from Bitcoin, it doesn’t have staking. This ETF does that for you,” Mazza said. “You maintain exposure to Bitcoin, but you get that income potential.”

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