Grayscale Introduces Two New Bitcoin ETFs, Offering a Fresh Way for Investors to Earn Income While Holding BTC

Grayscale, a leading crypto asset manager, has introduced two new Bitcoin ETFs, offering a fresh way for investors to earn income while holding BTC.

Crypto asset manager Grayscale has launched two new Bitcoin ETFs focused on generating income rather than maximizing capital gains.

These ETFs, Bitcoin Covered Call ETF (BTCC) and Bitcoin Premium Income ETF (BPI), use covered call strategies to systematically write calls on Bitcoin exchange-traded products, including the Grayscale Bitcoin Trust ETF (GBTC) and the Grayscale Bitcoin Mini Trust ETF (BTC).

BTCC is designed for an income-first strategy. It writes calls at close to spot prices to collect a premium and prioritize income generation. In the event of a market downturn, BTCC provides a safety net, making it attractive for those looking to balance risk and reward.

On the other hand, BPI writes call options at much higher strike prices, aiming to capture more upside from Bitcoin’s potential rise while still earning some additional income. This strategy allows investors to benefit from Bitcoin’s gains while maintaining a level of risk management.

Both BTCC and BPI do not directly hold Bitcoin but instead provide exposure to the cryptocurrency through other Bitcoin ETFs such as Grayscale’s Bitcoin Trust (GBTC) and Bitcoin Mini Trust (BTC).

David LaValle, Grayscale’s Global Head of ETFs, highlighted the value these funds bring to investors. According to LaValle, BTCC complements existing Bitcoin holdings by adding income, and BPI serves as a more strategic alternative to direct Bitcoin ownership, balancing upside potential with consistent income.

Institutional interest in Bitcoin has surged following the launch of spot ETFs in January 2024. However, Bitcoin’s volatility remains a concern. After a 48% surge in Q4 2024, Bitcoin lost 12% in Q1 2