Grayscale Expands Bitcoin Offerings With 2 New ETFs

Grayscale has launched two new Bitcoin-focused exchange-traded funds while simultaneously filing regulatory paperwork to convert its Digital Large Cap Fund to an ETF, signaling an expansion of the firm's product lineup as Wall Street continues its crypto push.

The newly launched products—the Grayscale Bitcoin Covered Call ETF (BTCC) and the Grayscale Bitcoin Premium Income ETF (BPI)—offer investors two different approaches to generating income from Bitcoin's price volatility through covered call writing strategies, according to Wednesday's announcement. Both funds aim to distribute income monthly while taking different approaches to options writing.

BTCC systematically writes calls very close to spot prices, leveraging Bitcoin's volatility to prioritize income generation. This strategy focuses primarily on delivering regular cash flows distributed to shareholders while potentially cushioning against market downturns by collecting option payments.

Meanwhile, BPI takes a different approach by systematically writing calls targeting strike prices that are well out-of-the-money. According to the release, this strategy allows investors to participate in much of Bitcoin's potential price increases while still benefiting from some dividend income, creating a more balanced approach between growth and income.

ETF Filing Follows NYSE Request

Separately, the asset manager submitted an S-3 registration statement to the Securities and Exchange Commission on March 31, seeking to convert its Digital Large Cap Fund to an exchange-traded fund. The filing follows an October 2024 request by NYSE Arca for permission to list the fund.

Read More: Grayscale Seeks SEC Nod for Multi-Crypto ETF Conversion

The Grayscale Digital Large Cap Fund, established in 2018, currently holds a diverse portfolio of cryptocurrencies including Bitcoin, Ethereum, Solana, XRP and Cardano. The company said that the fund manages more than $622 million in assets and is only available to accredited investors.

The S-3 filing indicates the fund would trade under the ticker "GDLC" and maintain its current structure as a passive investment vehicle that holds top digital assets by market capitalization.