Volatility-Driven Bitcoin Income: Grayscale Unveils Two Fresh ETF Offerings

Grayscale Rolls Out Two Bitcoin ETFs Designed to Turn Volatility Into Yield

Grayscale is doubling down on innovative bitcoin investment strategies with the launch of two new exchange-traded funds (ETFs) that aim to generate income from the digital asset’s price swings.

Set to debut on the NYSE this Wednesday, the Grayscale Bitcoin Covered Call ETF (BTCC) and the Grayscale Bitcoin Premium Income ETF (BPI) offer investors a way to benefit from bitcoin’s volatility rather than just its price movement.

Both ETFs employ covered call strategies—where the fund writes (sells) call options against bitcoin holdings to collect premium income. BTCC takes a more conservative approach by writing near-the-money calls, aiming for consistent returns. BPI, on the other hand, seeks higher yields by writing options further out-of-the-money, allowing for more upside capture alongside income generation.

The strategies are built around existing Grayscale products: GBTC and the recently launched Grayscale Bitcoin Mini Trust (BTC). These underlying assets provide the exposure to bitcoin, while the options overlay introduces the yield component.

Grayscale’s new ETFs come at a time when bitcoin’s price has become increasingly volatile. After surging nearly 50% in Q4 2024, the cryptocurrency stumbled in Q1 2025, falling over 12%. Investors looking for ways to cushion downside risk—or monetize sideways movement—might find these ETFs appealing.

As the market matures, products like BTCC and BPI highlight the growing appetite for structured crypto investments that offer both exposure and income.

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