BITWISE MARA OPTION INCOME STRATEGY ETF IMRA Stock Analysis

About BITWISE MARA OPTION INCOME STRATEGY ETF

The Fund is an actively managedETF that seeks to provide current income while providing exposure to the share price (i.e., the price returns) of MARA, subjectto a limit on potential investment gains. The Fund seeks to achieve these investment objectives through the use of a synthetic coveredcall strategy. The Fund seeks to provide its synthetic exposure to the price return of MARA through the purchase and sale of a combinationof call and put option contracts that utilize MARA as the reference asset. The Fund will also sell call options that utilize MARA as thereference asset to generate income in the form of option premiums, but will also limit the degree to which the Fund will participate ininvestment gains experienced by MARA. The Fund will invest at least80% of its net assets plus borrowings in options contracts that utilize MARA as the reference asset. For purposes of compliance with thisinvestment policy, derivative contracts will be valued at their notional value. Inimplementing its investment strategy, the Fund will invest in traditional exchange-traded options contracts and/or FLexible EXchange® options (“FLEX Options”) that utilize MARA as the reference asset. The Fund will only invest in options contracts that arelisted for trading on regulated U.S. exchanges. Traditional exchange-traded options have standardized terms, such as the type (call orput), the reference asset, the strike price and expiration date. Exchange-listed options contracts are guaranteed for settlement by theOptions Clearing Corporation (“OCC”). FLEX Options are a type of exchange-listed options contract with uniquely customizableterms that allow investors to customize key terms like type, strike price and expiration date that are standardized in a typical optionscontract. FLEX Options are also guaranteed for settlement by the OCC. It is anticipated that the Fund will invest primarily in FLEX Options.The FLEX Options held by the Fund may be either physical or cash settled. In general, an option is a contractthat gives the purchaser (holder) of the option, in return for a premium, the right to buy from (call) or sell to (put) the seller (writer)of the option the security or currency underlying (in this case, MARA) the option at a specified exercise price. The writer of an optionhas the obligation upon exercise of the option to deliver the underlying security or currency upon payment of the exercise price (call)or to pay the exercise price upon delivery of the underlying security or currency (put). The Fund may utilize both European and Americanstyle options. An option is said to be “European Style” when it can be exercised only at expiration whereas an “AmericanStyle” option can be exercised at any time prior to expiration. In a traditional covered callstrategy, an investor (such as the Fund) sells a call option on a security it already owns. However, the Fund will derive its exposureto MARA through the use of options contracts that use MARA as the reference asset. It is this distinction that causes the Fund’sstrategy to be properly termed as a “synthetic covered call strategy,” as opposed to a traditional covered call strategy,because the Fund primarily has synthetic exposure to MARA. The Fund’s synthetic exposure to MARA is achieved through the combinationof purchasing call options and selling put options generally at the same strike price, which synthetically creates the upside and downsideparticipation in the price returns of MARA. The Fund will primarily gain exposure to increases in value experienced by MARA through thepurchase of call options. As a buyer of these options, the Fund pays a premium to the seller of the options. The Fund will primarily gainexposure to decreases in value experienced by MARA through the sale of put options. As the seller of these options, the Fund receivesa premium from the buyer of the options. In combination, the purchased call and sold put options generally provide exposure to price returnsof MARA both on the…