Anchorage Digital Highlights Risks and Rewards of Bitcoin Covered-Call Strategies
- Anchorage Digital’s research suggests that Bitcoin covered-call strategies can provide synthetic yield but require strict management.
- The study conducted over more than 37,000 backtests warns that selling upside can limit gains during bull markets.
- From April 2025 to April 2026, a simple covered-call strategy generated a net yield of 5.5%, offsetting nearly one-third of BTC’s drawdown.
- When extended from October 2021 to April 2026, the same strategy produced a negative yield of -0.5% despite a favorable win/loss ratio.
The analysis by Anchorage indicates that covered-call strategies on Bitcoin are highly path-dependent and perform differently based on market conditions. While they can generate income in slow or falling markets, they may cap gains during strong rallies, highlighting the need for active management and strategic entry points.
Overall, Anchorage’s findings suggest that while covered calls can be beneficial under certain conditions, they require careful monitoring to avoid missing out on potential gains during significant market upswings (Source).
