Grayscale Announces Two New ETFs Turning Bitcoin Volatility into Revenue

Grayscale has launched two new Bitcoin Exchange Trade Funds (ETFS) and expanded its crypto investment suite with a revenue-generating product, according to a shared April 2nd statement. Encryption.

The greyscale Bitcoin Cover Call ETF (BTCC) and Grayscale Bitcoin Premium Revenue ETF (BPI) funds are designed to turn Bitcoin volatility into a source of normal cash flow.

BTCC aims to generate high yield returns by writing call options that are closer to the spot price of Bitcoin. This cover call approach allows the fund to collect optional premiums distributed to investors. This strategy maximizes revenue and provides a more stable return profile amidst the fluctuations in the crypto market.

By targeting mostly money calls, BTCC emphasizes consistent payments rather than capital growth. This makes it attractive to investors looking for income in unstable markets without selling their Bitcoin exposure directly.

Meanwhile, BPI takes a different route. By writing call options far from money, you blend income generation and growth potential. This allows investors to earn option premiums while taking part in the upward price movement of Bitcoin.

Grayscale explained that both funds are actively managed and are completely dependent on options strategies. Investors can expect monthly income distributions, and these ETFs are suitable for those looking to diversify their crypto income flows.

David Lavalle, global head of ETFS at Grayscale, noted that the new product offers investors a different layer of value. He said these ETFs will serve as alternatives for those who already hold Bitcoin but want to explore strategies to generate passive income.

On stage:

“We understand that every investor has their own unique needs and look forward to offering these new products that not only earn and deliver income, but also offer differentiated outcomes and behavioral traits tailored to their specific goals.”

This move is because crypto-related investment products will gain traction across the US market. Over the past year, asset managers have introduced waves of ETFs, including those related to derivatives and sector-specific strategies, as demand for crypto exposure continues to grow.