Share-split context: A reverse split was recorded on Dec 1, 2025 with coefficient 0.2. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

YBIT: YieldMax Bitcoin Option Income Strategy ETF

YBIT is an ETF designed to generate income using an option strategy related to Bitcoin. It is characterized by very high distributions but has experienced significant share-price declines.

What this ETF is trying to do

YBIT is an option-income ETF that focuses on crypto-related assets. Instead of simply holding Bitcoin, it uses an options strategy to create cash payments for investors.

What the numbers show

The share price of YBIT is $20.85 as of October 7, 2026. The fund has seen a significant decline in its share price:

• Year-to-Date (YTD) Price Return: -38.22%

• One-Year Price Return: -58.38%

When looking at Total Return (which includes the cash distributions), the numbers are different but still negative:

• YTD Total Return: -7.81%

• One-Year Total Return: -28.91%

This shows that while the cash payments helped offset some of the losses, the overall value of the investment still declined over the last year.

Income and Distribution Explanation

YBIT provides very frequent distributions, often paying out weekly (mostly on Thursdays). In the last 12 months, it has made 51 payouts.

• Distribution Yield: Approximately 55.90%

• Trailing Distributions: $11.66 per share

It is important to remember that a high distribution yield does not guarantee a profit. In this case, the high yield has existed alongside a falling share price.

Price and NAV Erosion Explanation

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, the price-based evidence shows a severe erosion-risk flag. YBIT has an erosion score of 10, which is labeled as "Severe price erosion." Additionally, the fund has a history of a reverse split (most recently on December 1, 2025). In a reverse split, multiple old shares are combined into fewer new shares, which mechanically raises the per-share price. This mechanical increase does not restore lost investment value.

Top Holdings

As of October 8, 2026, the fund's holdings are very concentrated:

• First American Government Obligs X (FGXXX): 0.96%

Pros

• Provides very frequent, high-volume cash distributions.

• Offers a way to get income exposure to Bitcoin-related strategies.

Cons

• Severe share-price decline over the last year.

• History of reverse splits to manage the share price.

• Total returns have been negative over the short and medium term.

Beginner Takeaway

YBIT is a high-risk ETF that pays out a large amount of cash frequently. However, the share price has dropped significantly. For income investors, this highlights the risk that high distributions can be accompanied by a loss of principal.