Key Takeaways
- • Bitwise Asset Management announced monthly distributions across its six Option Income Strategy ETFs (IMST, ICOI, IMRA, IGME, ICRC, and IETH), with distribution rates ranging from 22.66% to 51.01% for the core crypto-focused funds.
- • IMST (Bitwise MSTR Option Income Strategy ETF) leads in distribution rate at 51.01% ($0.49519 per share), while ICOI (Bitwise COIN Option Income Strategy ETF) follows at 50.68% ($0.51618 per share), both entirely comprised of return of capital distributions.
- • All distributions are classified as 100% return of capital for IMST, ICOI, and IMRA, indicating investors are receiving their own capital back rather than fund earnings, with 30-day SEC yields at 0.00% across these three funds.
- • IGME (Bitwise GME Option Income Strategy ETF) shows 57.40% return of capital with a $0.85361 distribution, demonstrating broader application of the covered-call income strategy beyond cryptocurrency holdings.
- • The suite of funds employs covered-call strategies on underlying assets to generate monthly income distributions, with performance metrics showing mixed results since inception, ranging from -47.71% (IMST) to -11.58% (IGME).
Summary
Bitwise Asset Management announced monthly distributions across its expanding portfolio of Option Income Strategy ETFs on May 21, 2026. The announcement encompasses six funds: IMST (MSTR), ICOI (COIN), IMRA (MARA), IGME (GME), ICRC, and IETH, each designed to generate regular monthly income through covered-call option strategies on their underlying assets.
The distribution rates vary substantially across the fund suite, with IMST leading at 51.01% annualized distribution rate ($0.49519 per share), followed closely by ICOI at 50.68% ($0.51618 per share). IMRA offers a 22.66% distribution rate ($0.24994 per share), while IGME provides 40.29% ($0.85361 per share). The funds' ex-dates and record dates were set for March 27, 2026, with payment dates of March 31, 2026, though some sources indicate distribution announcements occurred as recently as May 2026 for ongoing monthly payouts.
A critical metric for institutional investors is that all distributions for IMST, ICOI, and IMRA are classified as 100% return of capital, meaning shareholders are receiving their own contributed capital rather than fund earnings or investment gains. This structure is reflected in their 30-day SEC yields of 0.00%, signaling that no actual yield is being generated from underlying investments. IGME presents a different profile, with 57.40% of its $0.85361 distribution classified as return of capital and the remainder from other sources.
Performance data reveals challenges across the portfolio since inception. IMST shows the weakest return at -47.71%, while IMRA trails at -42.91% and ICOI at -27.64%. IGME, the GameStop-focused fund, performs comparatively better at -11.58% since inception. Recent one-month returns show IMST gained 10.52%, while IMRA declined 1.52%, indicating volatility in the underlying assets (Bitcoin, Coinbase, Marathon Digital, and GameStop).
These funds represent Bitwise's implementation of a systematic income strategy using equity options on volatile assets, appealing to investors seeking regular distributions. However, the prevalence of return-of-capital distributions and negative since-inception returns warrant careful due diligence regarding strategy sustainability and capital erosion.
The distribution rates vary substantially across the fund suite, with IMST leading at 51.01% annualized distribution rate ($0.49519 per share), followed closely by ICOI at 50.68% ($0.51618 per share). IMRA offers a 22.66% distribution rate ($0.24994 per share), while IGME provides 40.29% ($0.85361 per share). The funds' ex-dates and record dates were set for March 27, 2026, with payment dates of March 31, 2026, though some sources indicate distribution announcements occurred as recently as May 2026 for ongoing monthly payouts.
A critical metric for institutional investors is that all distributions for IMST, ICOI, and IMRA are classified as 100% return of capital, meaning shareholders are receiving their own contributed capital rather than fund earnings or investment gains. This structure is reflected in their 30-day SEC yields of 0.00%, signaling that no actual yield is being generated from underlying investments. IGME presents a different profile, with 57.40% of its $0.85361 distribution classified as return of capital and the remainder from other sources.
Performance data reveals challenges across the portfolio since inception. IMST shows the weakest return at -47.71%, while IMRA trails at -42.91% and ICOI at -27.64%. IGME, the GameStop-focused fund, performs comparatively better at -11.58% since inception. Recent one-month returns show IMST gained 10.52%, while IMRA declined 1.52%, indicating volatility in the underlying assets (Bitcoin, Coinbase, Marathon Digital, and GameStop).
These funds represent Bitwise's implementation of a systematic income strategy using equity options on volatile assets, appealing to investors seeking regular distributions. However, the prevalence of return-of-capital distributions and negative since-inception returns warrant careful due diligence regarding strategy sustainability and capital erosion.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.