Grayscale Investments, a prominent cryptocurrency asset management firm, has expanded its product lineup with two new Bitcoin exchange-traded funds (ETFs). These funds—the Bitcoin Covered Call ETF (BTCC) and the Bitcoin Premium Income ETF (BPI)—leverage covered call strategies to provide investors with income opportunities while maintaining exposure to Bitcoin’s price movements.
Grayscale Bitcoin Covered Call ETF (BTCC): Maximizing Income Potential
The BTCC ETF is designed for investors seeking consistent income from their Bitcoin holdings. Key features include:
- Covered Call Strategy: Systematically sells call options near Bitcoin’s current spot price, generating premium income.
- Underlying Assets: Tracks established Bitcoin ETFs like Grayscale’s Bitcoin Trust (GBTC) and Bitcoin Mini Trust (BTC).
- Risk Mitigation: Offers partial downside protection during market corrections, appealing to risk-conscious investors.
👉 Discover how BTCC enhances Bitcoin portfolios
Grayscale Bitcoin Premium Income ETF (BPI): Income with Growth Flexibility
The BPI ETF adopts a balanced approach, combining income generation with Bitcoin’s upside potential:
- Higher Strike Prices: Writes call options at elevated strike levels, allowing participation in Bitcoin’s price rallies.
- Strategic Diversification: Ideal for investors who want income without fully sacrificing long-term gains.
- Indirect Bitcoin Exposure: Like BTCC, BPI invests in Grayscale’s existing Bitcoin ETFs rather than holding BTC directly.
Why These ETFs Matter for Bitcoin Investors
Grayscale’s ETFs address two critical needs in the crypto market:
- Income Generation: Bitcoin’s volatility makes yield-focused products attractive.
- Risk Management: Covered calls help smooth returns during price fluctuations.
David LaValle, Grayscale’s Global Head of ETFs, highlights their utility:
"BTCC adds yield to Bitcoin holdings, while BPI serves as a strategic alternative to direct BTC ownership, blending growth potential with income."
Rising Demand for Volatility-Adjusted Bitcoin Strategies
Institutional adoption of Bitcoin has grown since spot ETF approvals in early 2024. Yet, Bitcoin’s price swings persist—rising 48% in late 2024 before dropping 12% in Q1 2025. Products like BTCC and BPI cater to investors seeking stability amidst this volatility.
👉 Explore Bitcoin investment strategies
FAQ: Grayscale’s Bitcoin ETFs
Q: Do BTCC and BPI hold Bitcoin directly?
A: No. Both ETFs track other Bitcoin ETFs (e.g., GBTC, BTC) for indirect exposure.
Q: How do covered calls reduce risk?
A: Option premiums provide income, offsetting potential losses during downturns.
Q: Who should consider these ETFs?
A: Investors prioritizing income, risk management, or alternatives to direct BTC ownership.
Q: What’s the difference between BTCC and BPI?
A: BTCC focuses on higher income near current prices, while BPI targets income with more upside potential.
Grayscale’s latest ETFs exemplify the maturation of crypto investment products, offering sophisticated tools to navigate Bitcoin’s dynamic market.