Anchorage Digital has issued a warning regarding Bitcoin covered-call strategies, highlighting their potential to cap gains during bull markets. According to research led by David Lawant, Head of Research at Anchorage Digital, while these strategies can generate synthetic yield for Bitcoin holders, they require strict management to avoid limiting upside potential during Bitcoin's volatile bull phases. The study, which involved over 37,000 backtests, found that selling upside on Bitcoin can cushion losses in weaker markets but sharply restrict gains when Bitcoin rallies. The research underscores the importance of active management in covered-call strategies, particularly in light of Bitcoin's tendency for sustained rallies. Anchorage's analysis suggests that disciplined strategies, which incorporate market condition filters and volatility thresholds, can improve outcomes. The study found that a filtered approach could enhance yield contributions significantly, with annualized returns reaching 5.2% over a full cycle. However, the strategy's success is highly dependent on market conditions, with the potential for significant income in slow markets but limited gains during strong upward trends.