Defiance ETFs has partnered with Milliman Financial Risk Management on a new income-focused product that leverages Milliman’s derivatives firepower from day one of trading. The Defiance BMNR Option Income ETF (NYSE:YBMN), which launched on Tuesday, is based on an options strategy on Bitmine Immersion Technologies, Inc. (NASDAQ:BMNR), crafted and executed by Milliman – one of the most seasoned names in risk modeling and overlay management.

A Heavyweight In Derivatives Takes Center Stage

While the ETF was placed on the BitMine stock as its underlying equity, Milliman’s role in shaping the fund’s income engine is the real star of this launch. The firm has spent decades building institutional-grade volatility and hedging frameworks to appeal to investors who like income but prefer their risk with training wheels.

Defiance CIO Sylvia Jablonski said the partnership gives the fund the discipline and quantitative backbone required for a strategy hinged on BMNR, a stock known for its crypto-linked volatility. Milliman's Robert Cummings noted that BitMine's Ethereum treasury structure creates precisely the kind of price swings that make options premium harvesting viable.

Also Read: BitMine Down 80% From The Top, But Tom Lee Keeps Buying ETH: What Gives?

A Multi-Engine Twister On Income ETF Formula

YBMN aims to offer consistent payouts while still keeping up to 80% exposure to BMNR. Rather than rely on a simple covered call setup, the fund uses a three-part structure to squeeze more efficiency out of BMNR's mood swings. The Core Income Engine targets a regular weekly premium. The Volatility Harvesting Engine algorithmically adjusts exposure depending on market conditions, designed to avoid the classic trap of being overexposed when volatility collapses. And the Capital Preservation Engine uses real-time market inputs to refine strike selection and limit the long-term drag that often plagues income ETFs.

With Milliman providing the quantitative architecture and BitMine offering a volatility profile worthy of the crypto ecosystem, Defiance is pitching YBMN as a hybrid: an equity income ETF with one foot in traditional risk management and the other in Ethereum-adjacent turbulence, minus the meme-stock theatrics.

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