Grayscale Launches New Bitcoin ETFs Targeting Yield Seekers
Leading crypto asset manager Grayscale Investments has launched two new Bitcoin-focused exchange-traded funds (ETFs), expanding its product offerings.The new ETFs include the Grayscale Bitcoin Premium Income ETF (BPI), and the Grayscale Bitcoin Covered Call ETF (BTCC). According to the asset manager, these ETFs introduce covered call writing strategies to help investors generate income while gaining exposure to Bitcoins volatility.Bitcoin Exposure with an Income-Generating TwistThe newly introduced ETFs cater to investors looking for income-first strategies in the volatile Bitcoin market. Unlike traditional Bitcoin ETFs that primarily track the assets price movement, BTCC and BPI incorporate cover call strategies, which involve selling options contracts to generate premiums.BTCC: Income-FocusedThe Grayscale BTCC ETF is an income-prioritization strategy. It achieves this by systematically selling call options close to Bitcoins spot price, generating regular option premiums for investors.While this approach provides a steady income stream, it caps the funds upside potential since gains are limited when Bitcoin surges above the call options strike price.According to Grayscale, this strategy could appeal to investors seeking consistent cash flows and a defensive approach to Bitcoin exposure by potentially reducing volatility during market drawdowns.BPI: Balance Between Income and UpsideOn the other hand, the Grayscale BPI ETF presents an alternative to investors who want exposure to Bitcoins price appreciation while still benefiting from some income generation. BPI achieves this by writing call options well out-of-the-money, meaning investors can participate in more of Bitcoins potential upside and still collect premiums.Grayscale believes BPI may attract investors who are bullish on Bitcoin but also want an additional layer of yield.https://twitter.com/Grayscale/status/1907418742348476541Grayscale Expanding Bitcoin Offering With the introduction of BTCC and BPI, Grayscale is diversifying its ETF offerings beyond its flagship Grayscale Bitcoin Trust (GBTC). The new funds provide alternative ways for investors to engage with Bitcoin by maximizing income.David LaValle, the Global Head of ETFs at Grayscale, emphasized that the launch of these two funds was driven by the need to address diverse investor objectives.Earlier this week, Grayscale sought the SEC's permission to convert its Digital Large Cap Fund, which holds Bitcoin, into an ETF. Per the filing, the ETF will list on NYSE, expanding access to its beyond accredited investors.
Text source: The Crypto Basic
