Grayscale Investments is a leading cryptocurrency asset management company that announced two new Bitcoin exchange-traded fund (ETF) with a focus on outcomes.
A April 2 announcementThe new products include the Grayscale Bitcoin Covered-Call ETF and Grayscale Bitcoin Premium Income ETF. In an email to Cointelegraph it was revealed that the new Bitcoin funds (BTCs) are designed to make money by leveraging BTC volatility.
“Both strategies may be considered as an alternative income stream that’s less correlated to traditional income-oriented investments.”
A complex derivative product
The Bitcoin covered call product aims to maximize income potential by capturing the highest premiums. Grayscale says that the product could be a complementary to Bitcoin exposure.
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In order to achieve this, the fund writes calls that are very close in price to current spot prices. It was hoped that Bitcoin’s high volatility would allow it to generate income by generating paid calls.
Bitcoin Premium income, however, aims to strike a good balance between an upside-participation and some degree of revenue generation. The Bitcoin Premium Income product is designed to provide an alternative for direct Bitcoin ownership, and it aims to achieve a balanced growth/income ratio.
This fund writes calls aimed at strike prices that are well outside the money for Bitcoin ETFs including Grayscale Bitcoin Trust(GBTC) or Grayscale Bitcoin Mini Trust(BTC). This announcement is:
“By focusing on this type of call writing strategy, BPI allows investors to participate in much of Bitcoin’s upside potential while possibly benefiting from some dividend income.”
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Grayscale Investments says that its new products provide a unique source of revenue. “delivers an uncorrelated source of income for investors.” In addition, new derivatives include monthly payments and systematic option management.
The latest greyscale file
Grayscale has also applied to list an Exchange-Traded Fund (ETF). holding a diverse basket of spot cryptocurrencies. This product includes Bitcoin (BTC), Ether (ETH), XRP (Ripple), Solana(SOL) or Cardano(ADA).
Late in March, Nasdaq filed a similar request with the US Securities and Exchange Commission. permission to list Grayscale Investments’ spot Avalanche ETF. Grayscale website lists There are 28 different crypto-products. 25 of them are derivatives of single assets, while three others are diversified.
Grayscale Asset Management is also a current asset manager. waiting for the approval of its XRP spot ETFYou can also find other products. We can also find other products among those. spot Cardano ETF filing The word is a Litecoin Trust conversion to an ETF.
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Source: cointelegraph.com
