Grayscale Launches New Bitcoin ETFs
Crypto asset manager Grayscale has announced the listing of two new exchange-traded funds (ETFs) designed to provide investors with a unique source of income through bitcoin's (BTC) inherent volatility. These ETFs, namely the Bitcoin Covered Call ETF (BTCC) and Bitcoin Premium Income ETF (BPI), are set to begin trading on Wednesday.
Key Features of the ETFs
- BTCC will employ a strategy of writing covered calls near the spot prices, aiming to deliver consistent income while providing a potential buffer against market downturns.
- BPI, on the other hand, will target options with significantly higher strike prices, allowing investors to capture much of BTC's upside potential while possibly benefiting from dividend income.
Despite the recent surge in institutional interest in BTC through ETFs since January 2024, the volatility of bitcoin remains a constant factor in the market. After a significant rise of nearly 48% in Q4, bitcoin started 2025 with a 12% decline.
Market Context
As institutional investors ramp up their exposure to bitcoin, there is a growing demand for innovative financial products from companies like Grayscale that can offer distinct income opportunities amid unpredictable market conditions. This trend is expected to continue, as the cryptocurrency landscape evolves with increased institutional involvement and product diversification.
Image credit: Nikhilesh De/CoinDesk
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