New Grayscale launches, filing reflects crypto product innovation boom

The company’s expanded lineup introduces new ETF products, as more and more issuers get into crypto funds

April 3, 2025 09:00 am

Grayscale new launch ETFs bitcoin covered calls

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There was talk at last week’s Exchange ETF conference around more crypto products coming as different types of investors enter the market.

Grayscale Investments is among those expanding its product lineup, introducing a Bitcoin Covered Call ETF (BTCC) and a Bitcoin Premium Income ETF (BPI).

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The strategies “may be considered as an alternative income stream that’s less correlated to traditional income-oriented investments,” the firm notes. They aim to distribute income monthly.

BTCC buys and sells call and put option contracts that utilize a bitcoin ETP (i.e. its GBTC and BTC trusts) as the reference asset. Its sale of call options may limit the fund’s gains when those bitcoin ETPs see share price increases.

As for BPI, the ETF writes calls targeting so-called out-of-the-money strike prices (those higher than bitcoin’s spot price). It’s meant to balance upside participation and income generation.

It was clear that options on bitcoin ETFs — letting institutional investors better manage BTC exposures in different market conditions — marked a new chapter for the asset class. Issuers have debuted funds utilizing options to offer downside protection, for example.

Another new chapter? Crypto index funds.

A Grayscale registration statement filed Monday is another step toward the firm trying to uplist its Grayscale Digital Large Cap Fund to an ETF (after NYSE Arca’s 19b-4 last year). That fund, currently trading on OTC Markets, holds bitcoin, ether, solana, XRP and cardano.

Hashdex, Bitwise and others are also looking to offer index ETFs that go beyond BTC and ETH exposure. We’ll find out in the coming months what the SEC has to say about that.

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