Digital Asset High Income

2% Monthly Income & Max Monthly Income

Why Exposure to These Strategies

The BITY Indexed Strategy (2% Monthly Income) and the BAGY Indexed Strategy (Max Income) seek to deliver distinct strategies to the emerging Bitcoin focused treasury ecosystem. These two strategies leverage weekly options-writing techniques to harness volatility associated with the price of Bitcoin, transforming it into valuable income opportunities, while also offering upside potential. The Bitcoin ecosystem, including treasury, needs solutions to provide income and not just holding BTC.

INDEX DETAILS

Index Name
Kelly Bitcoin 2% Monthly High Income Index
Index Symbol
BITY Index
Index Name
Kelly Bitcoin Max Income Index
Index Symbol
BAGY Index
Rebalance
Weekly
Exposure
Exchange Traded Products & Options
Asset Class
Bitcoin

Documents

Bitcoin High Income Guige
Download

Systematic Strategies Overview

The Kelly Bitcoin 2% Monthly High Income Index (the “BITY Index”) and Kelly Bitcoin Max Monthly Income Index (the “BAGY Index”) provides institutional, and retail investors, access to weekly options-writing techniques to harness volatility associated with the price of Bitcoin, transforming it into valuable income opportunities, while also offering Bitcoin upside.

Kelly’s Bitcoin High Income Solutions can also help institutional investors, and retail investors, alike make a balance sheet allocation to bitcoin as an alternative to Bitcoin treasury companies.

  • Advantages of BITY Index Strategy and BAGY Index Strategy:
    • High Cash Income Yield on Bitcoin.
    • Established infrastructure with predictable processes.
    • Access to diverse financial instruments for risk management and liquidity.
    • Not leveraged like Bitcoin Treasury Companies.
    • Pure play Bitcoin exposure through through regulated vehicles.
    • Liquidity Management: Bitcoin’s high volatility requires careful planning for liquidity needs.
  • Traditional corporate treasury management focuses on optimizing a company’s liquidity, managing financial risks, and ensuring efficient use of capital. It operates within established financial systems using fiat currencies and conventional banking infrastructure
  • Traditional treasury management prioritizes capital preservation and predictable returns while generating yields on cash.
  • Kelly’s Bitcoin Monthly High Income Index Solutions focuses on generating high monthly yield and income vs typical Bitcoin Treasury Companies: Bitcoin treasury companies, which hold Bitcoin as a reserve asset on their balance sheets, typically do not pay a yield or distribution in the traditional sense, like dividends or interest from bonds. Bitcoin itself is a non-yielding asset, meaning it does not generate periodic cash flows or payouts.
    • Bitcoin does not produce income like stocks (dividends) or bonds (interest).
    • Companies holding Bitcoin as a treasury asset, such as MicroStrategy, Metaplanet, or Semler Scientific, generally do not distribute Bitcoin or cash derived from Bitcoin holdings to shareholders as dividends. Their strategy focuses on long-term value appreciation rather than periodic payouts.
    • Kelly’s solutions utilizes institutional options management seeking to collect premiums 4x more often than monthly options, enabling the potential for compounded income and enhanced Bitcoin price returns.
  • Bitcoin may not be a conventional holding among corporate treasurers, institutional investors, and governments but a greater understanding of bitcoin may help to explain why corporate treasurers of institutional investors and allocator to embrace Bitcoin as a treasury solution.

 

Institutional Bitcoin Treasury Management

Charts, graphs, and graphics are provided for illustrative purposes only.

 

Strategy Linked Products

Product Name Ticker
Amplify Bitcoin 2% Monthly Option Income ETF BITY ETF
Amplify Bitcoin Max Income Covered Call ETF BAGY ETF

This list includes investable products traded on certain exchanges currently linked to this selection of indices. Please refer to the disclaimers here for more information about Kelly Intelligence’s relationship to such third party product offerings.

 

Diversification Tool

Bitcoin can serve as a diversification tool for corporate treasuries and investment portfolios due to its unique characteristics, low correlation with traditional assets, and potential to hedge against macroeconomic risks.
  • Low Correlation with Traditional Assets:
    • Bitcoin’s price movements have historically shown low or negative correlation with stocks, bonds, gold, and fiat currencies. For example, studies indicate Bitcoin’s correlation with the S&P 500 has typically ranged between -0.2 and 0.3, making it a potential hedge against equity market downturns.
    • This low correlation helps reduce overall portfolio volatility when combined with traditional assets, enhancing risk-adjusted returns.
  • Hedge Against Inflation and Currency Devaluation:
    • Bitcoin’s fixed supply cap (21 million coins) and decentralized nature position it as store of value, appealing to companies seeking protection against fiat currency debasement or inflation.
    • During periods of high inflation (e.g., 2020–2022), Bitcoin’s price often appreciated, offering a hedge compared to cash or bonds, which lose real value in inflationary environments.
  • Asymmetric Return Potential:
    • Bitcoin’s high volatility offers the potential for significant capital appreciation, which can diversify a treasury’s risk-reward profile. For instance, MicroStrategy’s Bitcoin holdings grew from $250 million in 2020 to over $45 billion by 2025, boosting its market cap and shareholder value.
    • This contrasts with low-yield assets like Treasuries, which offer stability but limited upside.
  • Strategic Positioning:
    • Holding Bitcoin signals innovation and forward-thinking, attracting investors and customers in tech-savvy or crypto-friendly markets.

Data as of March 31. 2025

 

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