Ethereum ETF Launch by Grayscale Coincides with Heavy Inflows Into ETH Investments

Grayscale Unveils Ethereum Covered Call ETF Amid Strong ETH Market Momentum

Grayscale, the world’s largest digital asset investment manager, has launched a new Ethereum-focused ETF, trading today under the ETCO ticker. The fund employs a covered call strategy to generate consistent income while maintaining exposure to ether (ETH).

The Grayscale Ethereum Covered Call ETF (ETCO) writes call options on Ethereum-linked products such as the Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Ethereum Mini Trust ETF (ETH). Premiums collected from these options are distributed bi-weekly, offering an income-oriented approach that may appeal to investors seeking cash flow from crypto markets.

The launch comes as ether has outperformed bitcoin in 2025, rising 34% year-to-date compared with BTC’s 20%. Strong retail and institutional interest has driven this growth, with August inflows into spot ETH ETFs outpacing those into BTC funds.

“ETCO is designed to complement existing Ethereum exposure by adding an income component,” said Krista Lynch, senior vice president of ETF capital markets at Grayscale.

Covered call strategies, common in equities to monetize volatility and reduce downside risk, are now being applied to crypto. By writing options near the spot price, ETCO seeks to turn ether’s price swings into a reliable source of yield. The fund’s primary goal is income generation, while its secondary aim is to capture ETH-linked returns.

ETCO joins Grayscale’s growing line of income-focused crypto funds, including the Bitcoin Covered Call ETF (BTCC) and the Premium Income ETF (BPI), providing investors with new ways to combine crypto exposure with regular cash flow.