Grayscale, the world’s largest digital asset investment manager, has launched a new exchange trade fund that will be linked to Ether’s (ETH) recent market momentum.
Grayscale Ethereum Cover Call ETF (ETCO) began trading on Thursday, offering ether exposure with an option creation strategy designed to generate stable revenue.
The launch comes when Ether, the native token of the Ethereum blockchain, is outperforming Bitcoin BTC$112,332.27 In 2025, the year will rise by 34% compared to 20% of BTC.
Behind the profits are new retail and institutional profits, proven by surges inflows into Spot ETFs, which warped people heading towards BTC funds in August.
Wall Street companies are increasingly adopting blockchain to streamline trading and payment system processes, creating capital flows to assets that have reduced demand in both spot and derivatives markets.
ETCO aims to capture that interest while providing a buffer for volatility. The fund systematically sells call options for Ethereum-linked Exchange-Traded products, such as the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH). The premiums generated from these options are distributed every other week to shareholders, making ETCO an “income-first” strategy that could appeal to investors seeking cash flow.
“We are pleased to announce that we are committed to providing a range of services and services to providing services that are important to us,” said Krista Lynch, senior vice president of ETF Capital Markets at Grayscale.
Covered call strategies are common in stocks and help investors monetize volatility and potentially reduce downside risk. Grayscale applies the same logic to the crypto market. There, the price of ether changes and opportunities for option premiums arise.
The fund’s main goal is to generate current revenue and aims to acquire etherlink returns. By writing call options that are close to spot prices, ETCO is trying to turn token volatility (often blocking traditional investors) into a source of yield.
This product will participate in Grayscale’s revenue-centric crypto fund growth line. This already includes Bitcoin Cover Call ETF (BTCC) and Premium Revenue ETF (BPI).
