Key Takeaways
- • Bitwise Asset Management is liquidating six crypto option income ETFs (BTOP, BWEB, and four others including ICOI and MARA variants) with automatic cash redemptions scheduled for May 29, 2026, for shareholders who do not sell positions by May 21, 2026.
- • The liquidated funds employed options strategies designed to generate monthly income while providing capped upside exposure to underlying crypto assets (Bitcoin, Ethereum, and Coinbase stock), with advertised 25% payout structures.
- • Bitwise manages $11 billion in client assets across a suite of over 70 crypto investment products; the liquidations represent a strategic narrowing of its options-based ETF offerings in the current market environment.
- • Shareholders face automatic redemption at net asset value (NAV) if positions are not actively sold, with cash distributions processed through brokers and financial intermediaries.
- • The liquidations underscore the operational challenges and market headwinds facing structured crypto income strategies in institutional-grade ETF vehicles.
Summary
Bitwise Asset Management announced the closure and liquidation of six crypto option income strategy ETFs, marking a significant contraction in its options-based product lineup. The affected funds include the Bitwise Trendwise BTC/ETH and Treasuries Rotation Strategy ETF (BTOP), the Bitwise Web3 ETF (BWEB), the Bitwise COIN Option Income Strategy ETF (ICOI), and related variants focused on equities (MARA). These products employed monthly income-generation strategies with options overlay, designed to provide current income while capping upside exposure to underlying crypto assets and equities.
The liquidation timeline provides shareholders with a redemption window through May 21, 2026, after which shares will be automatically redeemed for cash based on each fund's NAV. Distributions are expected to reach shareholders through their brokers and financial intermediaries on or around May 29, 2026. This structured approach gives investors approximately three weeks to execute exit decisions, though failure to act triggers automatic redemption at prevailing NAV valuations.
The ICOI fund, which specifically targeted monthly income generation tied to Coinbase (COIN) equity exposure, and comparable products offered 25% payout structures that appealed to income-focused investors. However, the liquidation reflects broader challenges facing crypto-linked options strategies in the ETF wrapper—including regulatory scrutiny, market volatility in underlying crypto assets, and operational complexity in managing monthly distributions and rebalancing within regulatory constraints.
Bitwise, with $11 billion in assets under management as of April 2026, maintains a diversified suite of over 70 investment products spanning traditional crypto indices (such as the $1.25 billion Bitwise 10 Crypto Index Fund) and specialized strategies including staking and exposure to emerging protocols. The decision to liquidate these option income ETFs suggests the firm is reallocating resources toward core index and thematic exposure products, which have demonstrated stronger institutional demand and simpler operational profiles. The move is consistent with industry trends away from complex derivative-based retail and institutional products toward transparent, lower-cost index solutions.
The liquidation timeline provides shareholders with a redemption window through May 21, 2026, after which shares will be automatically redeemed for cash based on each fund's NAV. Distributions are expected to reach shareholders through their brokers and financial intermediaries on or around May 29, 2026. This structured approach gives investors approximately three weeks to execute exit decisions, though failure to act triggers automatic redemption at prevailing NAV valuations.
The ICOI fund, which specifically targeted monthly income generation tied to Coinbase (COIN) equity exposure, and comparable products offered 25% payout structures that appealed to income-focused investors. However, the liquidation reflects broader challenges facing crypto-linked options strategies in the ETF wrapper—including regulatory scrutiny, market volatility in underlying crypto assets, and operational complexity in managing monthly distributions and rebalancing within regulatory constraints.
Bitwise, with $11 billion in assets under management as of April 2026, maintains a diversified suite of over 70 investment products spanning traditional crypto indices (such as the $1.25 billion Bitwise 10 Crypto Index Fund) and specialized strategies including staking and exposure to emerging protocols. The decision to liquidate these option income ETFs suggests the firm is reallocating resources toward core index and thematic exposure products, which have demonstrated stronger institutional demand and simpler operational profiles. The move is consistent with industry trends away from complex derivative-based retail and institutional products toward transparent, lower-cost index solutions.
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