Grayscale Introduces New Bitcoin ETFs and Files for Digital Large Cap Fund
At the recent Exchange ETF conference, discussions highlighted the introduction of new crypto products aimed at various investor types.
Grayscale Investments launched two ETFs:
- Bitcoin Covered Call ETF (BTCC): Utilizes bitcoin ETPs as a reference asset, buying and selling call and put options, which may cap gains during price increases.
- Bitcoin Premium Income ETF (BPI): Writes calls on out-of-the-money strike prices to balance income generation with potential upside.
Options on bitcoin ETFs enable institutional investors to manage BTC exposure under varying market conditions. Grayscale also filed to uplist its Grayscale Digital Large Cap Fund to an ETF, which includes assets like bitcoin, ether, solana, XRP, and cardano.
Other firms such as Hashdex and Bitwise are planning to introduce index ETFs that extend beyond BTC and ETH exposure. The SEC's response to these developments is awaited.