Breaking: Grayscale Seeks SEC Nod for Bitcoin Covered Call ETF
Grayscale Investments has taken a step forward by introducing a unique covered call exchange-traded fund (ETF). This move follows the recent transformation of its Grayscale Bitcoin Trust (GBTC) into a spot bitcoin ETF. The announcement, made just a day after the firm received approval from the Securities and Exchange Commission (SEC), highlights Grayscale’s commitment to expanding its offerings in the cryptocurrency market.
ETF Focuses on Income and Price Participation
The newly filed Grayscale Bitcoin Trust Covered Call ETF aims to generate current income while allowing investors to partake in the price movement of the Grayscale Bitcoin Trust. This approach does not involve direct investments in digital assets.
Instead, it leverages an actively managed strategy, focusing on buying and selling call and put options with GBTC as the underlying reference asset. This method offers an alternative way for investors to engage with the cryptocurrency market, balancing income generation with potential capital appreciation.
Grayscale Leads Post SEC’s Decision
Grayscale’s foray into the covered call ETF space comes on the heels of a successful launch of its spot bitcoin ETF, which, along with 10 other similar products, started trading on Thursday. These ETFs have already seen a combined trading volume exceeding $4 billion, with Grayscale leading the pack, as reported by Coingape. According to data from Yahoo Finance, the firm’s ETF recorded a trading volume of over $1.9 billion, outperforming competitors like BlackRock and Fidelity.
Significantly, the SEC’s recent approval of 11 spot bitcoin ETFs marks a historic turn in the regulatory landscape. Moreover, the SEC’s Chair Gary Gensler’s decision to greenlight these products aligns with the agency’s evolving stance on cryptocurrency investments. This development reflects a broader acceptance and recognition of digital assets in mainstream finance.
Read Also: Bitcoin (BTC) Price Sees Slow Gains Despite Spot ETF Hype
- Expert Explains Pi Network–Sign Meeting, Says It Could Trigger Binance Listing
- Is Trump Family, Mr. Beast Buying ASTER Token? Rumors Gain Strength
- Solana ETF Update: Grayscale, Fidelity, Others Files S-1 With Staking, Approval Expected in Two Weeks
- Cyber Hornet Seeks SEC Nod for S&P 500 and XRP ETF
- Cathie Wood’s Ark Invest Eyes Stake in Tether as USDT Issuer Targets $500B Valuation
- Solana Price Set for Q4 Surge as Canary Capital ETF Filing Meets Wyckoff Accumulation
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
