Grayscale Investments has today launched two new Bitcoin exchange-traded funds (ETFs), designed to help investors make money from Bitcoin’s price swings.
According to the press release, the two products are Grayscale Bitcoin Covered Call ETF (BTCC) and the Grayscale Bitcoin Premium Income ETF (BPI). Basically, these funds are all about using Bitcoin’s ups and downs to generate extra cash.
BTCC is built around a covered call strategy, meaning it makes money by selling options on Bitcoin at prices close to its current market value.
Since Bitcoin’s price is known to jump up and down, this method is designed to capture high premiums from those options and turn that volatility into income. Grayscale says this fund could be a good addition for investors who already hold Bitcoin and want to earn extra on the side.
Meanwhile, BPI takes a different approach by selling options at higher strike prices—prices further away from Bitcoin’s current market value. It does this by using Bitcoin ETFs, including Grayscale Bitcoin Trust (GBTC) and Grayscale Bitcoin Mini Trust (BTC).
This strategy tries to balance growth potential while still giving investors a regular stream of income.
“By focusing on this type of call writing strategy, BPI allows investors to participate in much of Bitcoin’s upside potential while possibly benefiting from some dividend income,” Grayscale said in the announcement.
Both ETFs are meant to offer investors a different way to make money from Bitcoin without actually owning it. They provide monthly payouts and use an automated system to manage the options strategy. The company says these funds will give investors a steady, uncorrelated income source that isn’t tied to traditional markets.
Grayscale has been making big moves in the ETF space. The company recently filed for an ETF that would hold multiple cryptocurrencies, including Bitcoin, Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). It’s also waiting for regulatory approval for a spot XRP ETF, a spot Cardano ETF, and the conversion of its Litecoin Trust into an ETF.
In late March, Nasdaq submitted a filing to the U.S. Securities and Exchange Commission (SEC) to list Grayscale’s spot Avalanche ETF. Grayscale currently manages 28 crypto-related products, which include 25 single-asset derivatives and three diversified funds.
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