Grayscale unveils 2 new ETFs turning Bitcoin volatility into income

Grayscale has launched two new Bitcoin exchange-traded funds (ETFs), expanding its crypto investment suite with products centered on income generation, according to an April 2 statement shared with CryptoSlate.

The funds, Grayscale Bitcoin Covered Call ETF (BTCC) and Grayscale Bitcoin Premium Income ETF (BPI), are designed to turn Bitcoin’s volatility into a source of regular cash flow.

BTCC aims to generate high-yield returns by writing call options close to Bitcoin’s spot price. This covered call approach allows the fund to collect option premiums distributed to investors. The strategy maximizes income and offers a more stable return profile amid crypto market swings.

By targeting near-the-money calls, BTCC emphasizes consistent payouts rather than capital growth. This makes it appealing for investors seeking income in a volatile market without directly selling their Bitcoin exposure.

Meanwhile, BPI takes a different route. It blends income generation with growth potential by writing call options far from the money. This allows investors to earn option premiums while still participating in Bitcoin’s upward price movement.

Grayscale explained that both funds are actively managed and rely entirely on options strategies. Investors can expect monthly income distributions, making these ETFs a potential fit for those looking to diversify their crypto income streams.

David LaValle, Global Head of ETFs at Grayscale, noted that the new products offer investors another layer of value. He said these ETFs serve as an alternative for those who already hold Bitcoin but want to explore strategies that generate passive income.

LaValle said:

“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.”

The move comes as crypto-linked investment products gain traction across US markets. Over the past year, asset managers have introduced a wave of ETFs, including those tied to derivatives and sector-specific strategies, as demand for crypto exposure continues to rise.