Grayscale Files for First Covered Call Spot Bitcoin ETF

The fund would offer actively managed exposure to GBTC.

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Finance Reporter
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Reviewed by: Kent Thune
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Edited by: Lou Carlozo

Grayscale Investments, the cryptocurrency investment firm that just converted its Grayscale Bitcoin Trust into a spot bitcoin ETF Thursday, also filed on the same day for a novel bitcoin covered call ETF.  

The prospectus filed with the U.S. Securities and Exchange Commission on Jan. 11 detailed how the Grayscale Bitcoin Trust Covered Call ETF would offer actively managed exposure to spot bitcoin through the Grayscale Bitcoin Trust (GBTC), while also buying and selling call and put options.  

“The Fund seeks to achieve its investment objective primarily through actively-managed exposure to Grayscale Bitcoin Trust (BTC) (“GBTC”) and the purchase and sale of a combination of call and put option contracts that utilize GBTC as the reference asset,” the prospectus said.  

A decade after the first spot bitcoin ETFs were proposed to the SEC, the agency approved 11 ETF applications on Jan. 10. The funds saw a historic trading day Thursday, with $4.6 billion in volume, Reuters reported Friday.  

“This is just the beginning,” said Ophelia Snyder, co-founder of 21Shares, which along with Ark Invest launched the ARK 21Shares Bitcoin ETF (ARKB) on etf.com’s live spot bitcoin ETF webinar

Snyder noted: “The key difference between yesterday and today is that now there’s a very clear pathway in trading crypto – and these products really do simplify access in a critical way to allow advisors and investors to participate in this space.” 

Spot Bitcoin ETF Race  

Eager crypto investors are already looking towards the next fund to push the envelope into other currencies. Several firms, including ARK/21Shares and BlackRock, have already filed with the SEC for spot ether funds.  

Grayscale’s filing for a covered call ETF marks the next step in likely a flurry of filings for creative ways to approach cryptocurrency exposure.  

Contact Lucy Brewster at [email protected].  

Lucy Brewster is a finance reporter at etf.com covering asset managers, emerging technologies, and regulation. She hosts etf.com webinars and appears on Exchange Traded Fridays, etf.com’s flagship podcast. She previously was a finance fellow at Fortune Magazine where she covered markets, investment strategy, and venture capital. She has also been a freelancer writer at the publication Mergers & Acquisitions and a research fellow at the Historic Hudson Valley. 

She graduated from Vassar College in 2022 with a degree in History and was an editor of The Miscellany News, the college's award winning student run newspaper. 

Lucy lives in Brooklyn, NY, and in her free time she loves to run and find new recipes to cook.