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