Grayscale Investments Launches Two New Bitcoin (BTC) ETFs Targeting Different Investor Profiles

Grayscale Investments has today launched two new Bitcoin (BTC) exchange-traded funds (ETFs), designed to help investors make money from Bitcoin's price swings.

Grayscale Investments has launched two new Bitcoin exchange-traded funds (ETFs) that are designed to help investors capitalize on the cryptocurrency's price movements in different ways.

The two products, which are named Grayscale Bitcoin Covered Call ETF (NYSE: BTCC) and the Grayscale Bitcoin Premium Income ETF (NYSE: BPI), will use varying covered call strategies to generate additional income for investors.

BTCC is focused on a covered call strategy that involves selling options on Bitcoin at prices that are close to its current market value.

“This strategy is designed to capture high premiums from the options due to Bitcoin’s high implied volatility, which is then used to pay a monthly dividend to investors. This product may be a useful addition for investors who already hold Bitcoin and are interested in earning additional income from their digital asset holdings,” Grayscale stated.

On the other hand, BPI will be selling options at higher strike prices, or prices that are further away from Bitcoin’s current market value. To create the fund, Grayscale will be using a basket of Bitcoin ETFs, including Grayscale Bitcoin Trust (NYSE: Gbtc) and Grayscale Bitcoin Mini Trust (Btc).

“By focusing on this type of call writing strategy, BPI allows investors to participate in much of Bitcoin’s upside potential while possibly benefitting from some dividend income as the covered call premiums are paid to the fund on a monthly basis,” Grayscale added.

Both ETFs are designed to offer investors an alternative way to invest in Bitcoin without directly owning the cryptocurrency. They will come with monthly payouts and an automated system for managing the options strategy.

“These funds are designed to offer investors a unique opportunity to generate a steady stream of uncorrelated income that is not tied to the performance of traditional markets.”

Earlier this week, Nasdaq (NASDAQ:NDAQ) submitted a filing to the U.S. Securities and Exchange Commission (SEC) to list Grayscale’s spot Avalanche (CRYPTO: AVAX) ETF.

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