New Grayscale Bitcoin ETFs Aim to Turn BTC Price Swings into Investor Income

Grayscale Launches Income-Focused Bitcoin ETFs to Capitalize on Market Volatility

Grayscale has rolled out two new bitcoin ETFs that aim to deliver income by tapping into the digital asset’s price volatility—marking another evolution in the crypto investment landscape. The new funds, set to debut on the New York Stock Exchange this Wednesday, offer a distinct strategy compared to traditional spot ETFs.

The Grayscale Bitcoin Covered Call ETF (BTCC) and the Grayscale Bitcoin Premium Income ETF (BPI) both employ covered call strategies. This approach involves selling call options against bitcoin-related holdings in exchange for premium income. These options are tied to underlying assets like Grayscale’s own Bitcoin Trust (GBTC) and Bitcoin Mini Trust (BTC).

BTCC takes a conservative route, selling call options near the current market price of bitcoin to seek steady income and downside cushion. Meanwhile, BPI caters to investors still eyeing bitcoin’s potential upside—selling call options with strike prices further from the current level to leave more room for gains while still collecting premiums.

The launch comes at a time when bitcoin’s volatility remains high. The cryptocurrency posted a 48% surge in Q4 2024 but gave back 12% in Q1 2025—an unusual reversal for what’s typically a strong quarter. By contrast, bitcoin gained over 70% in Q1 of both 2023 and 2024.

With institutions continuing to explore more refined crypto strategies, Grayscale’s new offerings provide a way to monetize market swings rather than just ride them. It’s a play that blends traditional finance mechanics with the dynamic nature of crypto assets—potentially appealing to income-seeking investors in an evolving market.