New Funds Set to Begin Trading on NYSE This Wednesday.
Grayscale has introduced two new exchange-traded funds (ETFs) designed to generate income from bitcoin's inherent volatility. The Bitcoin Covered Call ETF (BTCC) and the Bitcoin Premium Income ETF (BPI) are both set to debut on the New York Stock Exchange (NYSE) this Wednesday, providing investors with fresh strategies to earn from the price swings of BTC.
Both funds employ covered call writing strategies, a technique where investors sell call options to collect premiums, effectively monetizing bitcoin’s volatility. This approach allows for potential income while mitigating downside risks.
Bitcoin Covered Call ETF (BTCC): Writes call options close to BTC’s spot price, aiming to generate consistent income for investors who seek regular cash flow. The premium earned may also help cushion losses during market downturns.
Bitcoin Premium Income ETF (BPI): Targets call options with strike prices significantly above the current BTC price (out-of-the-money options). This strategy allows investors to capture more upside potential while still benefiting from income generated through option premiums.
Both BTCC and BPI will base their options strategies on existing bitcoin ETFs, including Grayscale’s own Bitcoin Trust (GBTC) and Bitcoin Mini Trust (BTC). This enables investors to gain exposure to BTC price movements without directly holding the cryptocurrency.
Since spot bitcoin ETFs launched in January 2024, institutional investment in BTC has surged. However, price swings remain a key characteristic of the asset. After rallying nearly 48% in Q4 2024, bitcoin stumbled in early 2025, dropping 12%—a stark contrast to its 72% and 69% gains in Q1 of 2023 and 2024, respectively, according to Coinglass data.
Given this persistent volatility, demand for investment vehicles like Grayscale’s new ETFs may grow. These products provide institutional and retail investors with alternative income strategies that can help balance the risks associated with BTC’s unpredictable price movements.
With their launch this week, BTCC and BPI offer new ways for investors to navigate the ever-changing bitcoin landscape while capitalizing on its signature volatility.