Grayscale Debuts Two Bitcoin ETFs Targeting Yield Through Volatility

Grayscale is expanding its crypto ETF lineup with the launch of two innovative funds designed to turn bitcoin’s wild price swings into income for investors.

The new products—Grayscale Bitcoin Covered Call ETF (BTCC) and Grayscale Bitcoin Premium Income ETF (BPI)—will begin trading on the New York Stock Exchange this Wednesday. Unlike traditional bitcoin ETFs that simply track spot prices, these two funds aim to generate returns by selling call options on bitcoin assets, a strategy known as a “covered call.”

BTCC will follow a conservative approach, writing options near bitcoin’s current price to generate steady premium income with lower volatility exposure. In contrast, BPI takes a more aggressive stance, selling options farther out of the money—leaving more room for potential upside while still producing yield.

Both funds will use shares of Grayscale’s GBTC and Bitcoin Mini Trust (BTC) as the underlying assets for their option strategies.

The timing of these ETFs aligns with an increasingly volatile crypto market. Bitcoin surged nearly 50% in the final quarter of 2024 but has since slipped over 12% in the first quarter of 2025, bucking a trend of strong early-year performance seen in previous years.

Grayscale’s move reflects growing demand from investors seeking not just price exposure to bitcoin, but also ways to generate income from it—especially in uncertain market environments. These ETFs could appeal to traditional finance players looking for structured crypto exposure with a yield component.