Grayscale Investments is listing two exchange-traded funds giving investors a modified source of income based on Bitcoin‘s volatile price movements, the crypto asset manager announced Wednesday.
The Bitcoin Covered Call ETF (BTCC) and Grayscale Bitcoin Premium Income ETF (BPI) use covered call strategies that allow investors to buy equity shares they already own at a given price.
Neither fund gives investors exposure to Bitcoin directly but rather the opportunity to cash in on the asset’s potential upside via contracts that bet on the cryptocurrency’s performance.
The new funds will use options Bitcoin exchange-traded products, including Grayscale’s two spot Bitcoin ETFs, the Grayscale Bitcoin Trust ETF (GBTC) and Grayscale Bitcoin Mini Trust ETF (BTC).
BTCC and BPI, which will trade on the New York Stock Exchange, are among the latest crypto offerings from issuers trying to meet investors’ voracious appetite for digital asset-focused products.
Grayscale was among 10 asset managers that last year received the green light from the SEC to launch a Bitcoin ETF. GBTC, which traded as a trust before converting to an ETF, manages about $16.5 billion in assets.
BTCC is “an income-first strategy, potentially ideal for investors seeking regular cash flows and high yielding opportunities,” while BPI aims to generate income and increase the fund’s value over time.
Bitcoin funds had the most successful ETF launch in the products’ 32-year history and now manage nearly $100 billion in assets. They have given investors previously locked out of the world of crypto investing.
The asset manager then converted its Ethereum trust to an ETF later that year. The asset manager also has trusts giving investors exposure to Bitcoin Cash, Filecoin, Chainlink, Litecoin, and other digital assets, and has taken steps toward debuting funds based on different altcoins.
“Grayscale® Bitcoin Covered Call ETF may complement an investors existing Bitcoin exposure by adding income, while Grayscale Bitcoin Premium Income ETF offers an alternative to Bitcoin ownership, aiming to balance upside participation and income generation for investors,” said David LaValle, Global Head of ETFs at Grayscale. “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.”
Decrypt reached out to Grayscale for additional comment.
Edited by James Rubin
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