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Grayscale Launches Two Bitcoin Income ETFs to Monetize Volatility

Bitcoin Bitcoin ETF Grayscale

Institutional strategies around Bitcoin are shifting from speculative bets to income-oriented structures.

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Hongji Feng

Author

Hongji Feng

About Author

Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

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Last updated:

April 1, 2025

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Key Takeaways:

Two new funds apply options strategies to Bitcoin-linked products, structuring them for monthly income.
One prioritizes yield by writing calls near current prices; the other leaves room for price participation.
It signals how volatility in crypto markets is being treated less as a hazard, more as utility.

Grayscale has introduced two exchange-traded funds structured to deliver income by writing options on Bitcoin-linked products, according to the company’s announcement published on April 2.

The Grayscale Bitcoin Covered Call ETF (BTCC) will write near-the-money call options on Bitcoin ETPs, including the firm’s GBTC and BTC funds.

The strategy has been designed to prioritize regular income over long-term exposure to Bitcoin’s price movements.

Through two different approaches to systematic covered call writing, both $BTCC and $BPI seek to harness #Bitcoin's distinctive volatility characteristics to achieve income generation. pic.twitter.com/bMvqCWXd2m
— Grayscale (@Grayscale) April 2, 2025

Grayscale Expands ETF Lineup with Options-Based Strategies

A second fund, the Grayscale Bitcoin Premium Income ETF (BPI), sells options at higher strike prices.

This provide a possibility for partial participation in Bitcoin’s appreciation while also generating income through option premiums.

Both funds will be fully options-based and will distribute income monthly. Grayscale has designed them to be actively managed without holding Bitcoin directly.

These new ETF products address different investor preferences for Bitcoin market participation.

“Grayscale Bitcoin Covered Call ETF may complement an investors 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,” said David LaValle, Grayscale’s Global Head of ETFs.

“We understand that every investor has unique needs, and we’re excited to offer these new products that not only may capture and deliver income but also offer differentiated outcomes and behavioral characteristics tailored to their specific goals,” said LaValle.

Bitcoin Volatility Repackaged for Yield-Oriented Investors

The launch has expanded Grayscale’s ETF product suite following the SEC approval of spot Bitcoin ETFs.

This development has highlighted broader trends among asset managers who have begun offering structured exposure to Bitcoin through strategies historically used in equity income portfolios.

The introduction of income-focused crypto funds marks a shift in how financial products are being designed for a maturing market.

Rather than targeting growth alone, fund managers are increasingly repackaging volatility itself as a source of return.

Additionally, this change reflects a more general recalibration of investor behavior.

The distinction between structured and speculative finance is becoming increasingly hazy as digital assets are incorporated into conventional frameworks, raising new concerns about the evaluation and pricing of risk.