Grayscale has just expanded its cryptocurrency investment portfolio with two new Bitcoin ETF funds, according to an announcement on April 2nd. These products aim to leverage Bitcoin's volatility to create stable cash flow for investors.
The two new funds include Grayscale Bitcoin Covered Call ETF (BTCC) and Grayscale Bitcoin Premium Income ETF (BPI). Both apply option strategies to optimize profits from Bitcoin price fluctuations.
BTCC applies a covered call strategy close to Bitcoin's spot price, aiming to collect option fees and redistribute them to investors. This approach prioritizes creating stable income and limiting risks compared to direct Bitcoin investment in a highly volatile market.
By focusing on near-the-money options, BTCC targets periodic cash flow rather than capital growth, suitable for investors seeking returns in a volatile cryptocurrency market without directly selling Bitcoin.
Meanwhile, BPI focuses on a balanced strategy between income and price appreciation potential. This fund sells out-of-the-money call options, allowing investors to collect option fees while having opportunities to benefit from Bitcoin price increases.
Grayscale states that both funds are actively managed and entirely based on option strategies. Investors can receive monthly income distributions, helping to diversify cryptocurrency income sources.
David LaValle, Grayscale's Global Head of ETF, emphasizes that the new products bring additional value to investors:
"We understand that each investor has unique needs, and we are delighted to introduce these products not only to generate income but also to provide distinctive investment characteristics aligned with their goals."
This move occurs against the backdrop of increasingly attractive cryptocurrency-related investment products in the US market. Over the past year, numerous ETFs related to derivatives and specialized investment strategies have been launched, reflecting growing demand for digital assets.
