Grayscale launches two new Bitcoin outcome-oriented products

Major cryptocurrency plus manager Grayscale Investments announced 2 caller Bitcoin outcome-oriented exchange-traded funds (ETFs).

According to an April 2 announcement, the caller products are the Grayscale Bitcoin Covered Call ETF (BTCC) and the Grayscale Bitcoin Premium Income ETF (BPI). According to an email sent to Cointelegraph, the 2 caller Bitcoin (BTC) funds are meant to make gross by harnessing BTC volatility:

“Both strategies whitethorn beryllium considered arsenic an alternate income watercourse that’s little correlated to accepted income-oriented investments.“

A analyzable derivative product

The Bitcoin Covered Call merchandise seeks to seizure the highest premiums and maximize imaginable income. Grayscale suggests that it whitethorn service arsenic a complement to Bitcoin exposure.

Related: Bitcoin traders are overstating the interaction of the US-led tariff warfare connected BTC price

The fund's strategy involves systematically penning calls precise adjacent to spot prices. The anticipation is that, owed to Bitcoin’s historically precocious volatility, it would make income done paid telephone generation.

On the different hand, the Bitcoin Premium Income merchandise seeks to equilibrium upside information with a grade of income generation. This is meant to enactment arsenic an alternate to nonstop Bitcoin ownership and seeks a equilibrium betwixt maturation and income generation.

This money systematically writes calls targeting onslaught prices good out-of-the-money connected Bitcoin ETFs, including Grayscale Bitcoin Trust (GBTC) and Grayscale Bitcoin Mini Trust (BTC). The announcement reads:

“By focusing connected this benignant of telephone penning strategy, BPI allows investors to enactment successful overmuch of Bitcoin's upside imaginable portion perchance benefiting from immoderate dividend income.“

Related: Bitcoin terms gearing up for adjacent limb of ‘acceleration phase’ — Fidelity research

Grayscale Investments promises that some the caller products volition let for a differentiated root of gross that “delivers an uncorrelated root of income for investors.” Furthermore, the caller derivatives volition diagnostic monthly distributions and systematic options management.

Just the latest grayscale filing

Earlier this week, Grayscale besides filed to database an exchange-traded money (ETF) holding a divers handbasket of spot cryptocurrencies. This caller merchandise includes Bitcoin, Ether (ETH), XRP, Solana (SOL) and Cardano (ADA).

In precocious March, the US banal speech Nasdaq besides filed to the US Securities and Exchange Commission (SEC) seeking permission to database Grayscale Investments’ spot Avalanche ETF. Grayscale’s website lists 28 crypto products, of which 25 are single-asset derivatives, and 3 are diversified.

Grayscale is besides among the plus managers currently waiting for the support of its XRP spot ETF, arsenic good arsenic different products. Among those products, we tin find the spot Cardano ETF filing and its Litecoin Trust conversion to an ETF. 

Magazine: Bitcoin ATH sooner than expected? XRP whitethorn driblet 40%, and more: Hodler’s Digest, March 23 – 29