Grayscale Launches Two New Bitcoin-Themed Exchange-Traded Funds (ETFs) Targeting Income Generation

Grayscale has introduced two new bitcoin-focused exchange-traded funds (ETFs), the Bitcoin Covered Call ETF (BTCC) and the Bitcoin Premium Income ETF (BPI).

Grayscale has announced the launch of two new exchange-traded funds (ETFs) designed to offer investors income-generating opportunities through bitcoin exposure.

As announced in a press release on Wednesday, the Grayscale Bitcoin Covered Call ETF (BTCC) and Grayscale Bitcoin Premium Income ETF (BPI) employ covered call strategies to capitalize on bitcoin’s volatility and provide potential returns.

BTCC focuses on maximizing income by writing covered call options at a premium closely tied to BTC’s spot price. This approach may help mitigate downside risks during market downturns and is designed for investors who prioritize consistent cash flow.

In contrast, BPI adopts a more balanced strategy by writing covered call options at strike prices further out-of-the-money. This allows investors to retain some upside exposure to bitcoin’s price appreciation, similar to an ETF tracking the token itself, along with the benefit of dividend-like income.

“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,” said David LaValle, Global Head of ETFs at Grayscale.

Both ETFs are actively managed, fully options-based, and aim to distribute income monthly. By leveraging bitcoin’s distinctive properties, these funds present investors with a new way to generate yield and participate in the broader crypto market.