New Bitcoin ETF Combines $BTC Exposure with 0DTE Options and 25% Leverage

Bitcoin yield products have proliferated, from CeFi lending to staking, but the launch of BDAY brings a traditional ETF wrapper with a sophisticated twist: zero-days-to-expiry options overlaying a 25% leveraged Bitcoin position. For crypto-native investors, this is both an opportunity to earn regular income and a test of how derivative strategies will affect Bitcoin’s spot market. This analysis explores what BDAY means for liquidity, volatility, and the maturation of crypto investment products.

Hamilton Capital Partners Inc., operating as Hamilton ETFs, has launched the Hamilton Enhanced Bitcoin DayMAX™ ETF (ticker BDAY), marking the first exchange-traded fund in Canada to combine direct Bitcoin exposure with an actively managed, ultra-short-term options strategy. BDAY employs a 0DTE (zero-days-to-expiry) options overlay and modest 25% leverage to generate semi-monthly income while providing exposure to Bitcoin. The fund raises the bar for structured crypto products in a regulated vehicle, but its mechanics also introduce elevated risk that requires careful framing.

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This product leverages the expertise of Hamilton ETFs, which manages over $17 billion in assets and has built a suite of yield-focused ETFs under its DayMAX brand, typically applied to equities.

The launch arrives as Bitcoin ETF offerings have matured. Spot Bitcoin ETFs in the U.S. have accumulated billions in assets, but few embed income-generating strategies beyond direct price appreciation. In Canada, several Bitcoin ETFs exist—some with modest covered call strategies—but none have paired the volatile underlying with 0DTE options and leverage. This product leverages the expertise of Hamilton ETFs, which manages over $17 billion in assets and has built a suite of yield-focused ETFs under its DayMAX brand, typically applied to equities. By extending the concept to Bitcoin, the firm is testing whether traditional options-income mechanics can work in a market characterized by sharp rallies and brutal drawdowns.

BDAY's strategy involves selling ultra-short-term options on Bitcoin, collecting premiums that can be distributed as income. With 0DTE contracts expiring the same day they are traded, the fund can potentially generate frequent income streams, but also faces heightened gamma risk and the potential for sudden losses in erratic markets. The 25% leverage amplifies both the income potential and the drawdown risk, making the fund suitable only for investors comfortable with high volatility. Hamilton ETFs highlights its active management as a risk-mitigation tool, but the track record of such strategies in the crypto space is untested.

Industry context further illuminates the product's significance. In traditional equities, 0DTE options have exploded in popularity, driving volumes on exchanges like Cboe, where BDAY will list. However, Bitcoin's 24/7 trading cycle and occasional illiquidity spikes present unique challenges for an options selling strategy. Wall Street firms have only recently begun offering Bitcoin options with sufficient liquidity for such approaches, and the nascent state of Canadian-listed crypto derivatives could limit the depth of the options market BDAY can tap. The launch on Cboe Canada, a venue known for innovation, signals confidence that the infrastructure exists, but execution risk lingers.