Grayscale, one of the largest digital asset management companies in the world, has just expanded its product portfolio with two new Bitcoin ETF funds, leveraging derivative strategies to generate income from Bitcoin price fluctuations. This could be a turning point for investors to earn stable profits from BTC without waiting for price increases.
Two New Bitcoin ETF Funds: BTCC And BPI
The two products that Grayscale just announced include:
🔹 Grayscale Bitcoin Covered Call ETF (#BTCC )
🔹 Grayscale Bitcoin Premium Income ETF (#BPI )
Both are based on options strategies, combined with Bitcoin ETFs such as Grayscale Bitcoin Trust ETF (GBTC) and Grayscale Bitcoin Mini Trust ETF (Mini GBTC).
Key Differences:
✅ BTCC focuses on generating periodic income by selling Bitcoin call options.
✅ BPI balances between income from options and the opportunity for BTC price growth.
These two funds open up a new approach, helping investors benefit from Bitcoin even when the market is stagnant or highly volatile.
BTCC: "Income-First" Strategy – Generating Stable Income From Bitcoin
🔹 Grayscale Bitcoin Covered Call ETF (BTCC) is designed to generate consistent cash flow, not entirely reliant on BTC price growth.
🔹 The fund uses a covered call option strategy close to the current Bitcoin price, allowing investors to collect option fees while still holding the underlying asset.
💡 Benefits of BTCC:
✔️ Generate income even when Bitcoin does not rise, thanks to option fee income.
✔️ Mitigate risks when the market declines, thanks to cash flow from option fees offsetting.
✔️ Suitable for investors who prefer stable income, especially during strong BTC fluctuations.
📌 BTCC is not a pure investment fund in Bitcoin, but a smart strategy to turn BTC into a steady income source.
BPI: Combining Income And Bitcoin Growth Potential
🔹 Grayscale Bitcoin Premium Income ETF (BPI) is an option for investors who want cash flow from BTC while keeping the potential for price appreciation.
🔹 Instead of selling options near the Bitcoin price like BTCC, BPI uses a strategy of selling call options at significantly higher prices (out-of-the-money options).
💡 BPI's Strengths:
✔️ Generate income from option fees without completely losing the opportunity to benefit from Bitcoin's price increase.
✔️ Suitable for investors who want to hold BTC long-term, but still have additional income.
✔️ Maintain a balance between income from derivatives and capital growth potential.
📌 BPI is not a pure Bitcoin fund, but a strategy to help investors gain additional profits from BTC instead of just "buying and waiting for the price to rise."
Is Grayscale "Paving the Way" For New Crypto ETFs?
The launch of these two Bitcoin ETF funds comes right after #Grayscale submitted an application to convert the Digital Large Cap Fund into an ETF, showing that the company is rapidly expanding its crypto-related products.
🧐 Reasons Grayscale is Pushing Bitcoin ETFs:
✔️ Spot Bitcoin ETFs have paved the way for interest from traditional financial circles.
✔️ Derivative strategies help investors be more flexible, not solely dependent on BTC price trends.
✔️ Crypto is increasingly seen as a serious investment asset rather than just a speculative asset.
In Summary – Who Should Care About BTCC And BPI?
✅ If you want to earn income from Bitcoin without needing the price to rise: BTCC is a good choice.
✅ If you want to maintain the potential for BTC price appreciation while also having cash flow: BPI is more suitable.
✅ If you just want to hold Bitcoin without caring about derivatives: These two funds may not be necessary for you.
Grayscale is not simply creating Bitcoin ETFs; they are shaping the future of BTC investment. The biggest question right now is: How will the market respond to these new ETFs? 🚀