KeyInsights

• Grayscale’s BTCC ETF uses near-spot options to deliver monthly income from Bitcoin.
• BPI ETF blends Bitcoin growth with dividend-like returns for shareholders.
• New ETFs expand Grayscale’s offerings, tapping into crypto market demand.

Crypto investment firm Grayscale has launched two new ETFs to harness Bitcoin’s price swings for investor profit. Named the Grayscale Bitcoin Covered Call ETF (BTCC) and the Grayscale Bitcoin Premium Income ETF (BPI), these funds began trading on April 2, 2025 Notably, the announcement has sparked interest among investors looking for ways to earn steady returns in the crypto market.

Per the announcement, the BTCC fund focuses on generating regular income by leveraging Bitcoin’s volatility. Grayscale achieves this goal by using options tied to its existing Bitcoin exchange-traded products, such as the Grayscale Bitcoin Trust ETF (GBTC) and Grayscale Bitcoin Mini Trust ETF (BTC)

By writing call options near Bitcoin’s current price, the fund aims to deliver monthly payouts to shareholders while still tracking the asset’s performance.

Moreover, this approach could soften the impact of market dips. Grayscale notes that the strategy takes advantage of Bitcoin’s frequent price shifts to prioritize cash flow. Investors seeking consistent returns might find this fund appealing due to its focus on income over pure price growth.

BPI Blends Growth and Dividend-Like Returns

Meanwhile, the BPI fund offers a different twist by combining income with Bitcoin’s potential upside. Grayscale manages this ETF actively, using options with higher strike prices to allow investors to benefit from price increases while earning regular dividends

Like BTCC, it distributes income monthly, providing a steady stream for shareholders. Additionally, BPI taps into the same Bitcoin ETPs as BTCC, ensuring exposure to the cryptocurrency’s movements. For context, Grayscale’s dual approach with these funds reflects a tailored response to diverse investor needs.

Grayscale Expands ETF Offerings Amid Growing Demand

Before this launch, Grayscale pursued several ETF filings with the U.S. Securities and Exchange Commission. Recently, the firm sought approval for an Avalanche (AVAX) ETF on March 28 and a Polkadot (DOT) ETF in February, signaling its push to broaden crypto investment options. These efforts highlight the company’s focus on meeting rising interest in digital asset funds.