The YieldMax Universe Fund of Option Income ETFs (YMAX) is experiencing downward pressure due to a combination of market factors affecting its underlying assets. Recent data indicates a significant outflow from spot Bitcoin ETFs, with record withdrawals signaling weaker demand. This trend is mirrored in the broader market for option income ETFs, as investors reassess their positions amid changing market conditions. Additionally, the CME futures premium for Bitcoin has declined, reducing the profitability of cash-and-carry arbitrage strategies, which may further dampen demand for related ETFs.
The Federal Reserve's recent announcement on December 20, 2024, has also contributed to market volatility. Fed Chair Jerome Powell's indication of a slower pace of interest rate cuts in 2025 than previously anticipated has introduced uncertainty into the market. This hawkish shift has led to a sharp sell-off, impacting investor sentiment and causing a reevaluation of risk across various asset classes, including those tracked by YMAX. The Fed's revised projections, which include higher core inflation and economic growth, have added to the cautious outlook among investors.
The YMAX ETF is down 2.14% in pre-market hours on Friday, December 20, falling to $16.92 as of 7:45 AM ET.