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Grayscale Launches New Bitcoin ETFs Targeting Yield Seekers
Grayscale Launches New Bitcoin ETFs Targeting Yield Seekers
April 2, 2025
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Leading crypto asset manager Grayscale Investments has launched two new Bitcoin-focused exchange-traded funds (ETFs), expanding its product offerings. The new ETFs include the Grayscale Bitcoin Premium Income ETF (BPI), and the Grayscale Bitcoin Covered Call ETF (BTCC). According to the asset manager, these ETFs introduce covered call writing strategies to help investors generate income while gaining exposure to Bitcoin’s volatility.
Bitcoin Exposure with an Income-Generating Twist
The newly introduced ETFs cater to investors looking for income-first strategies in the volatile Bitcoin market. Unlike traditional Bitcoin ETFs that primarily track the asset’s price movement, BTCC and BPI incorporate covered call strategies, which involve selling options contracts to generate premiums.
BTCC: Income-Focused
The Grayscale BTCC ETF is an income-prioritization strategy. It achieves this by systematically selling call options close to Bitcoin’s spot price, generating regular option premiums for investors. While this approach provides a steady income stream, it caps the fund’s upside potential since gains are limited when Bitcoin surges above the call option’s strike price. According to Grayscale, this strategy could appeal to investors seeking consistent cash flows and a defensive approach to Bitcoin exposure by potentially reducing volatility during market drawdowns.
BPI: Balance Between Income and Upside
On the other hand, the Grayscale BPI ETF presents an alternative to investors who want exposure to Bitcoin’s price appreciation while still benefiting from some income generation. BPI achieves this by writing call options well out-of-the-money, meaning investors can participate in more of Bitcoin’s potential upside and still collect premiums. Grayscale believes BPI may attract investors who are bullish on Bitcoin but also want an additional layer of yield.
Introducing the Grayscale Bitcoin Covered Call ETF (ticker:$BTCC), strategically designed to maximize potential income generation on Bitcoin exposure and distribute dividends monthly.
See important disclosures or learn more here ⬇️https://t.co/ZpOazwbtSUpic.twitter.com/TgwLJWpJI5
— Grayscale (@Grayscale) April 2, 2025
Grayscale Expanding Bitcoin Offering
With the introduction of BTCC and BPI, Grayscale is diversifying its ETF offerings beyond its flagship Grayscale Bitcoin Trust (GBTC). The new funds provide alternative ways for investors to engage with Bitcoin by maximizing income. David LaValle, the Global Head of ETFs at Grayscale, emphasized that the launch of these two funds was driven by the need to address diverse investor objectives. Earlier this week, Grayscale sought the SEC’s permission to convert its Digital Large Cap Fund, which holds Bitcoin, into an ETF. Per the filing, the ETF will list on NYSE, expanding access to it beyond accredited investors.
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