Grayscale is broadening its range of exchange-traded funds (ETFs) by introducing two new products designed for investors interested in covered call writing strategies.
On April 2, 2025, Grayscale, a prominent player in the crypto asset management sector, unveiled its latest Bitcoin (BTC) ETFs: the Grayscale Bitcoin Covered Call ETF and the Grayscale Bitcoin Premium Income ETF. These funds will operate under the ticker symbols BTCC and BPI, respectively.
These innovative Bitcoin ETF offerings will enable investors to tap into options-based income generation through covered call strategies. With this approach, Grayscale aims to provide a pathway for investors to capitalize on Bitcoin’s price fluctuations while focusing on income generation.
The introduction of BTCC and BPI comes at a time of heightened interest in exchange-traded products. Grayscale is also working to increase its footprint in the market, with a recent application to the U.S. Securities and Exchange Commission seeking to convert its Digital Large Cap Fund into an ETF.
BTCC follows an “income-first strategy” that is designed to exploit Bitcoin’s volatility, presenting an appealing proposition for investors seeking consistent cash flows and attractive yields. Additionally, the option premiums captured can serve as a hedge against potential downturns in the market.
“Grayscale Bitcoin Covered Call ETF may enhance an investor’s existing Bitcoin exposure by introducing income, while the Grayscale Bitcoin Premium Income ETF provides an alternative to direct Bitcoin ownership, focusing on balancing upside engagement and income generation,” noted David LaValle, global head of ETFs at Grayscale.
The Grayscale Bitcoin Covered Call ETF is structured to generate current income while also providing access to BTC returns through options related to spot Bitcoin ETFs. Grayscale intends to incorporate its spot ETF offerings, such as the Grayscale Bitcoin Trust ETF and the Grayscale Bitcoin Mini Trust ETF, into the BTCC fund.
On the other hand, the Bitcoin Premium Income ETF will aim for call options on BTC with strike prices that are “well out of the money,” allowing participants to potentially gain from dividend-like income stemming from Bitcoin appreciation.
Grayscale has indicated that both funds will be actively managed, entirely options-focused, with the goal of delivering monthly income distributions to their investors.
