Bitwise is liquidating six crypto option ETFs that offered 25% payouts while returning investors’ own capital

Friday, July 31, was the final trading day for six Bitwise option-income ETFs. Shareholders still holding shares as of Aug. 3 face automatic cash redemption rather than an exchange sale.

The Bitwise Funds Trust board voted June 30 to liquidate ICOI, IMRA, IMST, IGME, ICRC, and IETH, according to an SEC prospectus supplement.

The products use option-income strategies tied to Coinbase, Marathon Digital, Strategy, GameStop, Circle, and Ethereum. The funds were set to stop accepting creation and redemption orders after the July 31 close.

Bitwise's corrected timetable puts the final net asset value calculation on Aug. 7 and expects proceeds to reach investors through brokers or other financial intermediaries on or around Aug. 10.

That sequence means holders are not choosing an execution price once trading stops. Shares still held as of Aug. 3 are slated to be redeemed for cash at the fund's NAV. The SEC filing says shareholders generally recognize a capital gain or loss, and a fund may or may not make one or more distributions before or with the redemption payment.

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