Grayscale Investments Launches New Bitcoin-Focused ETFs
Digital asset manager and exchange-traded fund (ETF) issuer Grayscale Investments has launched two new Bitcoin-focused ETFs designed to provide investors with income-generating opportunities. According to a press statement published on Wednesday, the Grayscale Bitcoin Covered Call ETF (BTCC) and the Bitcoin Premium Income ETF (BPI) will employ options-based strategies to capitalize on Bitcoin’s volatility while offering potential cash flow for investors.
Grayscale launch BTCC and BPI
Per the release, the Bitcoin Covered Call ETF promotes an income-generation strategy by systematically writing call options close to Bitcoin’s spot price. The approach could maximize premiums while offering investors consistent returns, potentially lowering the risks during market downturns.
By contrast, the Bitcoin Premium Income ETF (BPI) focuses on capital appreciation alongside income by writing call options with strike prices significantly above the current Bitcoin value. This allows investors to benefit from potential price increases while also generating dividend-like income.
Both funds actively manage their positions, using Bitcoin exchange-traded products such as the Grayscale Bitcoin Trust ETF (GBTC) and the Grayscale Bitcoin Mini Trust ETF (BTC) as underlying assets. Grayscale intends to distribute income from these funds monthly as a viable option for investors seeking regular cash flow in the crypto market. There is no guarantee that the fund will meet its investment goal, but it seeks to do so by consistently writing call options near Bitcoin’s spot price.
“Grayscale Bitcoin Covered Call ETF may complement an investor’s 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,” David LaValle, Grayscale’s Global Head of ETFs said.
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Grayscale seeks SEC approval for digital large-cap fund conversion
Alongside the BTC-covered call ETF launch, Grayscale filed an S-3 registration statement with the U.S. Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund (GDLC) from a private investment vehicle into a publicly traded ETF. GDLC is a diversified fund holding Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA).
The submission follows an earlier filing by NYSE Arca, which forwarded a 19b-4 form in October seeking regulatory approval to list and trade the GDLC ETF. The proposed rule change under NYSE Arca Rule 8.800-E aims to facilitate the introduction of multi-asset index funds to the exchange.
Bloomberg analyst James Seyffart noted that Grayscale’s filing aligns with a regulatory deadline that began last year. The SEC began its 240-day review process for the 19b-4 application on November 4, 2024, setting a decision timeline that could see approval before the end of Q3 2025.
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Seyffart and other market analysts predict that regulatory acceptance of index-based crypto ETFs could open the door for more institutions to participate in the crypto market.
GBTC records outflows as BTC consolidates
Meanwhile, Bitcoin ETFs recorded their third consecutive day of outflows on April 1, 2025, with total net withdrawals reaching $157.64 million. Grayscale’s GBTC saw $10.07 million in outflows after 6 days of no activity.
BTC ETF Net flows chart. Source: Farside Investors.
To date, GBTC has accumulated $22.54 billion in total net outflows, bringing its net assets down to $16.42 billion. It is still the third-largest Bitcoin ETF by net assets, though it ranks the lowest in cumulative flows.
Bitcoin remains in a downward trend channel over the medium to long term, signalling sustained selling pressure as investors exit at lower prices. The largest coin by market cap, now changing hands at $85,400, recently reached its target of $85,000 following a double-top breakout before rebounding slightly.
Still, the pattern suggests a continued decline. Bitcoin currently has support at $80,000 and faces an immediate resistance at $88,000. From a technical standpoint, and the outflow trend on ETFs, the outlook is leaning towards bearish over the medium to long term.
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