Speaking of people launching products, we've got Black Rock's new Bitcoin ETF. Let's institutions earned from earned from volatility, there's a catch.
The catch obviously is that the upside is capped. So I've told you about this product before and I told you that Goldman also uh has a proposed product that is very similar.
And the real story here is not that Black Rock's launching an ETF. They launched, it's the most successful ETF launch of all time. Bitcoin spot ETFs writ large have been the best performing category uh in their early infancy in the history of ETFs.
But the story is that we're getting the full breadth of financial products that we have not had on Bitcoin slowly rolling out.
So, in this case, they're basically going to sell calls against their own ETF. So if Ibit goes up, you get that benefit, but your upside is capped.
They're targeting about 75% because those calls will will lose money.
But obviously, if Bitcoin goes down or stayed sideways, stays sideways, you can earn a yield. They're targeting a 15% yield per year, which is an exceptional number with a slightly capped upside in Bitcoin.
This is the way that a lot of people hedge or will be looking to invest. Well, I mean, let's be frank, right? They're paying you yield on Bitcoin, but they're doing it in a way that steals your own upside.
So, I'm not sure many individuals would want to do that. It's like having a friend who buys you lunch with money that he stole from your wallet. Right?
And so, this is not something that I would be personally interested in, but it does to some degree blend what we're seeing with Treasury companies, right?
STRC offers an 11.5% yield. It's a totally different kind of product, just to be clear, but people want yield.
And it's offering 11.5% while you can also get the upside uh of owning the underlying asset of Bitcoin by owning, some would say, micro strategy stock or owning Bitcoin itself.
Well, Black Rock finding a really interesting washing machine, a really creative way to both have Ibit be the underlying instead of Bitcoin itself and to offer you that yield. It is just so clear right now that the world is racing towards yield.
Right? Everybody wants a yield and this comes at a time when the clarity act uh and politicians and the banking and crypto industry are debating whether you can get a yield on a stable coin, which very clearly you should be able to.
Well, crypto is finding other ways to offer that yield. This remember, I just told you yesterday that uh Bit mine today is launching their preferred at 9.5% yield.