24/7 Cryptocurrency News

Grayscale Launches Ethereum Covered Call ETF to Generate Income from ETH

The Grayscale Ethereum Covered Call ETF will provide investors with an avenue to generate income from ETH's volatility.
Published by
Grayscale Launches Ethereum Covered Call ETF to Generate Income from ETH

Highlights

  • The ETCO ETF will aim to generate income with a secondary objective capturing returns linked to ETH.
  • Grayscale already offers spot Ethereum ETFs which provide direct exposure to ETH.
  • This comes amid a resurgence in Ethereum's price over the last three months.

Asset manager has announced the launch of its Ethereum Covered Call ETF (ETCO), which seeks to provide investors with exposure to ETH. The Grayscale Ethereum Covered Call ETF will mainly focus on generating income through its volatility characteristics.

Advertisement

Details On The Grayscale Ethereum Covered Call ETF

In a press release, the asset manager announced the launch of its Ethereum Covered Call ETF, which will provide exposure to the second-largest crypto by market. Grayscale noted that ETH represents a compelling diversification play for many investors in the crypto space.

The Grayscale Ethereum Covered Call ETF will offer a covered call writing strategy, providing investors with exposure to ETH’s volatility characteristics as a source of income. The Fund aims to generate current income, with a secondary objective of capturing returns linked to ETH.

Furthermore, the ETF will achieve its objective by using options on Ethereum ETPs that track the ETH price. Meanwhile, ETCO joins Grayscale’s list of income-focused products, including the Bitcoin Covered Call ETF (BTCC), which generates income from the flagship crypto.

Commenting on the launch of the Grayscale Ethereum Covered Call ETF, the firm’s Senior Vice President of ETF Capital Markets, Krista Lynch, remarked that they designed the Fund to complement an investor’s existing ETH exposure by adding an income component.

“We know that investors are all unique with different needs and investment goals, and we’re excited to introduce this new ETF as part of our commitment to providing innovative, outcome-oriented solutions that meet them where they are,” Lynch added.

Advertisement

The Fund May Invest In ETHE and ETH ETFs

Grayscale stated that its Ethereum Covered Call ETF may invest in options on each of its Ethereum Trust ETF (ETHE) and its Ethereum Mini Trust ETF (ETH). To achieve its goals, the Fund will systematically write call options near current spot prices, aiming to capitalize on ETH’s volatility, which they then distribute to shareholders.

It is worth mentioning that Grayscale’s spot Ethereum ETFs, ETHE and ETH, are currently the second and fourth largest ETH Funds, with net assets of $4.80 billion and $3.18 billion, respectively. However, the asset manager notably had a head start, as it converted its ETHE Fund from a closed-end fund into an ETF.

Meanwhile, the launch of the Grayscale Covered Call ETF comes at a time when the ETH price is witnessing a resurgence. For context, the altcoin is up over 77% over the last 90 days and up 21% in the last month. ETH could still record significant gains with the Fed likely to make a rate cut at the next FOMC meeting.

Share
Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and 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.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Michael Saylor’s Strategy Fails To Make S&P 500 Listing, MSTR Stock Drops

Strategy, led by Executive Chairman Michael Saylor, has been left out of the latest S&P…

September 6, 2025
  • 24/7 Cryptocurrency News

Solana Treasury Company SOL Strategies Gets Approval To List On Nasdaq

SOL Strategies Inc. has received approval to be listed on the Nasdaq Global Select Market.…

September 6, 2025
  • 24/7 Cryptocurrency News

Fidelity, Grayscale, VanEck Dump Ethereum Amid ETH Price Crash

Ethereum (ETH) price fell sharply as Fidelity, Grayscale, and VanEck drove heavy ETF outflows, but…

September 6, 2025
  • 24/7 Cryptocurrency News

Ethereum Treasury Firm SharpLink Confirms Compliance Amid Nasdaq Oversight

SharpLink has reaffirmed its full compliance with Nasdaq rules, dismissing speculation about shareholder approval requirements.…

September 5, 2025
  • 24/7 Cryptocurrency News

Trump Media Acquires 684M CRO for Cronos Treasury, Strikes Deal with Crypto.com

A deal with Crypto.com has led to the establishment of a Cronos Treasury by the…

September 5, 2025
  • 24/7 Cryptocurrency News

SEC and CFTC To Host Roundtable To ‘Harmonize’ Regulatory Frameworks for Crypto

The SEC and CFTC have announced a roundtable as they move forward with plans to…

September 5, 2025