Lombard: Bitwise runs institutional LBTC yield strategy - 20 Aug 2026

Bitwise is running a covered-call options strategy for LBTC, targeting a variable 2.5% net APY paid in Bitcoin, with full allocation planned by September.The strategy adds an institutionally managed yield use case for LBTC, extending its role beyond passive holding. Returns paid in Bitcoin give investors a defined utility tied to the asset itself, while the options-based yield engine is intended to support a larger allocation as the program develops.The 2.5% figure is a variable target, so the announcement describes an intended return structure rather than demonstrated performance. Full allocation is also still planned, which separates the strategy's availability from evidence of broader adoption.The first iteration of established demand. The second is built for scale.Same token. Same integrations. Same mint and redeem logic.What changed is the yield-engine: from emissions that fade to options that scale.If you hold LBTC today, there's nothing to do.