Grayscale has announced the launch of its Bitcoin Covered Call and Bitcoin Premium Income ETFs. The asset manager stated that these funds seek to allow investors to access Bitcoin’s volatility characteristics as a “differentiated source of income.”
In a press release, Grayscale announced that it has launched its Bitcoin Covered Call ETF and Bitcoin Premium Income ETF. The asset manager stated that these two funds, which offer covered call writing strategies, seek to provide investors with access to BTC’s feature as a different source of income.
Commenting on the launch of these Bitcoin ETFs, David LaValle, Global Head of ETFs at the firm, said,
Grayscale Bitcoin Covered Call ETF may complement an investor’s existing Bitcoin exposure by adding income, while Grayscale Bitcoin Premium Income ETF offers an alternative to Bitcoin ownership, aiming to balance upside participation and income generation for investors. We understand that every investor has unique needs, and we’re excited to offer these new products that not only may capture and deliver income but also offer differentiated outcomes and behavioral characteristics tailored to their specific goals.
The Bitcoin Covered Call ETF will provide current income. The asset manager stated that the fund’s secondary objective will be to participate in the returns of Bitcoin by using options on BTC’s exchange-traded products, whose investment objectives are to, before fees and expenses, track the flagship crypto’s performance.
The Bitcoin ETPs involved in this arrangement include Grayscale’s Bitcoin Trust ETF (GBTC) and the Mini Trust ETF (BTC). The fund aims to achieve the investment objective by systematically writing calls close to the spot Bitcoin price. The asset manager remarked that this strategy will leverage BTC’s volatility to help prioritize income, which they will then distribute to fund shareholders.
Meanwhile, the Grayscale Bitcoin Premium Income ETF aims to provide current income to investors while maintaining prospects for capital appreciation by using options on BTC ETPs whose investment objectives are to track the flagship crypto’s performance.
Similar to the Covered Call ETF, this arrangement will include, but not be limited to, Bitcoin ETPs such as GBTC and BTC. The asset manager stated that the fund seeks to achieve this by systematically writing calls targeting strike prices that are well out-of-the-money.
Grayscale claimed that this type of call writing strategy will ensure that the fund allows investors to participate in Bitcoin’s upside potential while possibly benefiting from some dividend income.
The asset manager will actively manage both funds, which will be entirely based on options and aim to distribute income monthly. The launch of these Bitcoin ETFs comes just a day after the firm filed to convert its Digital Large Cap Fund into an ETF.
Bitcoin has rebounded to as high as $86,000 amid this development. However, market participants still have their eyes on Donald Trump’s tariffs announcement later today.
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