Anchorage Digital, a digital asset custodian, issued a research report warning that Bitcoin yield strategies, specifically covered-call writing, could suppress gains when BTC enters a sharp uptrend. The firm’s analysis, led by Head of Research David Lawant, examined more than 37,000 individual backtests across every possible entry point between October 2021 and April 2026, using the Deribit implied-volatility surface for hourly simulations. The findings underscore a critical trade-off: while such strategies can shield against drawdowns in weak markets, they systematically cap upside when Bitcoin rips higher.
The report notes that notional Bitcoin options open interest has grown roughly ten-fold over the past five years, briefly exceeding $100 billion at the end of 2025 before settling around $60 billion in the study period. This figure, Anchorage says, surpasses the open interest of certain traditional futures markets, reflecting the derivative's rising institutional relevance. The study positions options as no longer niche but central to crypto capital markets, requiring disciplined management to avoid missing violent bull phases.
Regulatory implications are indirect but significant. The SEC and CFTC have not issued specific guidance on Bitcoin options yield strategies, though the agencies increasingly scrutinize crypto derivatives under existing securities and commodity frameworks. Anchorage's warning aligns with broader global caution: regulators in the EU under MiCA and in Asia are developing rules that could affect how such strategies are offered to retail and institutional clients. The report implicitly flags that yield-hungry investors may overlook regulatory risks tied to product structuring.
In a market cap context, Bitcoin commands roughly 55% of the total crypto market, and its volatility remains a key driver for options activity. Anchorage's analysis shows that covered-call strategies, while popular among BTC holders seeking income, introduce a performance drag in bull markets that contrasts with Bitcoin's historical rallies, which often see double-digit gains in short periods. The report does not provide price targets but suggests that as BTC dominance fluctuates, these strategies may underperform pure spot exposure.
Counterparty risk and liquidity in the Deribit market remain a caveat. Critics argue that backtests using hourly simulations in an emerging market may not capture real-world slippage or sudden volatility spikes, potentially overstating the strategy's effectiveness. Anchorage itself emphasizes that strict discipline is required, a condition not replicable by all investors.
Counter Argument: Traditional options practitioners contend that covered-call strategies are designed explicitly to forgo some upside in exchange for income, and that Anchorage's warning merely restates a known trade-off. Others note that the backtest dataset (2021–2026) includes a historic downturn, skewing results toward drawdown protection rather than upside capture.
AI Context: This brief is based solely on the provided NewsBTC article summarizing Anchorage Digital's research. The trust rating for the source is 'verified,' but the content reflects a single firm's proprietary analysis. No other news outlets have independently verified these findings. Specific numbers (like notional open interest of $100B and $60B) are quoted directly from the article; price data and market cap percentages for Bitcoin are derived from general knowledge and are not present in the source itself, so precision cannot be guaranteed.