Bitcoin Covered Call ETF Now Promoted by Grayscale

Key Points:

• Grayscale Investments updated its prospectus for a Bitcoin Covered Call ETF, aiming to generate income through a covered call strategy involving GBTC and Bitcoin Mini Trust.
• Options trading for BlackRock’s iShares Bitcoin Trust (IBIT) launched on Nasdaq, with the SEC approving multiple rule changes to support spot Bitcoin ETFs.

Grayscale Investments, the largest cryptocurrency asset manager, has filed an amended prospectus for its Bitcoin Covered Call ETF.

Read more: $15M Shares of Grayscale Bitcoin Mini ETF Appears in Emory Investment 

Grayscale Advances Bitcoin Covered Call ETF Plans

The Bitcoin Covered Call ETF, which has not yet been assigned a trading code, is designed to give investors exposure to Bitcoin while seeking to derive an income from options trading.

The ETF will focus on investments in the Grayscale Bitcoin Trust (GBTC) and the Bitcoin Mini Trust, among others, through a covered call strategy. This strategy entails selling call options on assets held by the fund and offers a combination of income generation with participation in the price movements of Bitcoin.

Grayscale CEO Michael Sonnenshein previously hinted at the company’s plans to launch Bitcoin Covered Call ETF, emphasizing its potential to help investors earn additional income from their Bitcoin holdings, Reuters reported.

This development comes after Grayscale received approval to trade Bitcoin ETF options earlier this year. The company’s prior filing with the U.S. Securities and Exchange Commission (SEC) outlined its intention to provide current income while tracking GBTC’s price performance.

Options Trading of SEC-Approved Comes into Full Force

Greater momentum has also been seen in the wider cryptocurrency ETF market. Options trading for BlackRock’s iShares Bitcoin Trust began today on Nasdaq after the firm received regulatory approval from the SEC in September. The SEC also greenlit related rule changes filed by the New York Stock Exchange and Cboe Global Markets, allowing several spot Bitcoin ETFs to be listed.

OCC has also declared readiness to clear and settle options for spot Bitcoin ETFs. It did this shortly after the CFTC advisory that said such products were clearly under the jurisdiction of the SEC.

Trading volumes have now exceeded $500 billion since the introduction of spot Bitcoin ETFs, an important milestone for cryptocurrency-based investment products. The regulator also broadened the range of approvals to include spot Ether ETFs earlier this year.