Grayscale Launches Two Bitcoin ETFs for Income Generation

Grayscale, a leading crypto asset manager, has launched two new Bitcoin-focused exchange-traded funds (ETFs) aimed at providing investors with income-generating strategies. The Grayscale Bitcoin Covered Call ETF (BTCC) and the Grayscale Bitcoin Premium Income ETF (BPI) were introduced on April 2, 2025, and will be traded under the ticker symbols BTCC and BPI, respectively.

The BTCC is designed as an income-first strategy that utilizes Bitcoin’s volatility to deliver regular cash flows and high yield. This ETF will generate current income by selling call options close to the current price, with a secondary objective of participating in the returns of Bitcoin through options on spot Bitcoin ETFs. The fund will include Grayscale’s spot ETF products, such as the Grayscale Bitcoin Trust ETF and the Grayscale Bitcoin Mini Trust ETF, to achieve its goals. Investors can use the option premiums received to hedge against market downturns, making BTCC a complementary addition to existing Bitcoin exposure.

The BPI, on the other hand, targets calls on Bitcoin strike prices that are well out of the money. This strategy allows investors to benefit from potential dividend-like income from Bitcoin appreciation. The fund earns premiums by selling call options and distributes dividends to investors on a monthly basis. This approach offers an alternative to direct Bitcoin ownership, balancing upside participation and income generation for investors.

Both ETFs are actively managed and fully options-based, aiming to provide income distribution on a monthly basis. The launch of these new products is part of Grayscale’s broader strategy to gain further traction in the exchange-traded products space. The asset manager has also recently filed with the U.S. Securities and Exchange Commission to convert its Digital Large Cap Fund into an ETF, indicating a continued push to expand its offerings.

David LaValle, global head of ETFs at Grayscale, highlighted the benefits of these new ETFs, stating that the Grayscale Bitcoin Covered Call ETF may complement an investor’s existing Bitcoin exposure by adding income, while the Grayscale Bitcoin Premium Income ETF offers an alternative to Bitcoin ownership, aiming to balance upside participation and income generation for investors. This move by Grayscale reflects the growing demand for income-focused investment strategies in the crypto market, providing investors with new tools to navigate the volatile landscape of digital assets.