Grayscale Launches Two Bitcoin ETFs for Income Generation Through Volatility
Grayscale has launched two new exchange-traded funds (ETFs) on the New York Stock Exchange:
- Bitcoin Covered Call ETF (BTCC)
- Bitcoin Premium Income ETF (BPI)
Both ETFs employ covered call writing strategies to generate income from bitcoin's volatility.
- BTCC focuses on writing calls near current spot prices for regular cash flow and potential protection against market declines.
- BPI targets out-of-the-money options, allowing investors to benefit from bitcoin's price increases while possibly earning dividend income.
The funds will utilize options contracts that track other bitcoin ETFs, including Grayscale's Bitcoin Trust (GBTC) and Bitcoin Mini Trust (BTC).
Despite increased institutional investment in bitcoin through spot ETFs since January 2024, volatility remains high. Bitcoin gained nearly 48% in Q4 but lost 12% at the start of 2025. Historical performance shows increases of 72% and 69% in the first quarters of 2023 and 2024, respectively, according to Coinglass data.
Growing demand for income-generating products may arise as institutions expand their bitcoin exposure.