Grayscale Launches Ethereum Covered Call ETF Amid Rising ETH Interest
Grayscale has launched the Grayscale Ethereum Covered Call ETF (ETCO), which began trading recently. The ETF offers exposure to ether using an options-writing strategy aimed at generating steady income.
- ETCO launches amid ether outperforming bitcoin in 2025, with a 34% rise year-to-date compared to bitcoin's 20%.
- Increased retail and institutional interest noted, particularly in August with significant inflows into spot ETH ETFs.
- Wall Street firms are adopting blockchain for trading and settlement, boosting demand for crypto assets.
- ETCO sells call options on Ethereum-linked products like the Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH).
- Premiums from these options are distributed to shareholders bi-weekly, targeting investors seeking cash flow.
- The fund aims to generate current income while capturing ether-linked returns through volatility management.
- ETCO joins Grayscale's lineup of income-focused crypto funds, including Bitcoin Covered Call ETF (BTCC) and Premium Income ETF (BPI).
This ETF is positioned to appeal to investors looking for income alongside their existing Ethereum investments.