Grayscale Expands ETF Offerings with New Bitcoin Income Funds

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Grayscale is expanding its ETF lineup with two new Bitcoin income funds designed to generate monthly payouts. These funds use an automated options strategy, allowing investors to profit without directly holding Bitcoin. As interest in alternative investments grows, from structured crypto products to crypto presales that offer early access to emerging tokens, Grayscale continues to push for financial products that meet evolving market demands.

Bitcoin Income ETFs Offer Monthly Payouts

Grayscale is launching two new funds that let investors earn from Bitcoin’s price changes without actually owning it. The Grayscale Bitcoin Covered Call ETF (BTCC) and the Grayscale Bitcoin Premium Income ETF (BPI) use a strategy based on Bitcoin’s volatility. Since Bitcoin’s value often moves up and down sharply, these ETFs sell options to capture high premiums from those price changes. The collected premiums are then turned into monthly payouts for investors.

This approach offers a way to generate steady income, even when Bitcoin’s price is unpredictable. Unlike directly holding Bitcoin, where profits depend on selling at the right time, BTCC and BPI focus on profiting from market movement itself. Grayscale sees these ETFs as a reliable income source separate from traditional stocks and bonds, giving investors another way to benefit from the crypto market’s volatility.

Grayscale’s Growing ETF Ambitions

Alongside its Bitcoin income funds, Grayscale is expanding its range of crypto investment products. While the new ETFs focus on generating steady payouts, the company is also working on broader offerings that include multiple cryptocurrencies. A recent filing outlines plans for a fund that would hold assets like Bitcoin, Ethereum, XRP, Solana, and Cardano, reinforcing its role in crypto asset management.

Grayscale’s ambitions go beyond multi-asset funds. It is currently awaiting regulatory approval for spot ETFs tied to XRP and Cardano, as well as the planned conversion of its Litecoin Trust into an ETF. These developments reflect its strategy to strengthen its position in the fast-evolving crypto market.

Regulatory Filings and Market Expansion

Grayscale’s ETF expansion depends on regulatory approval, with multiple filings currently under review. In late March, Nasdaq submitted a request to the U.S. Securities and Exchange Commission (SEC) to list Grayscale’s proposed spot Avalanche ETF. This filing adds to the company’s growing list of pending applications, which include spot ETFs for XRP and Cardano, as well as the planned conversion of its Litecoin Trust.

At the moment, Grayscale operates 28 crypto-related investment products. These cover 25 single-asset derivatives focused on specific cryptocurrencies and 3 diversified funds, including a dogecoin-focused fund launched this year. With its expanding portfolio, the company aims to provide a range of options for investors looking to gain exposure to crypto markets through regulated financial products.

By increasing its ETF offerings, Grayscale is reinforcing its position as a leading provider of crypto investment solutions. However, regulatory decisions will determine how quickly these new funds reach the market.