⭐️ Grayscale Files Updated Prospectus for Bitcoin Covered Call ETF Following Options Approval
Grayscale Investments has filed an updated prospectus for its Bitcoin Covered Call ETF (exchange-traded fund).
It signals a swift action after the Commodity Futures Trading Commission (CFTC) approved the listing of spot Bitcoin ETF options.
🔸 Grayscale Pursues Bitcoin Covered Call ETF
The fund, which will offer exposure to Bitcoin and the Grayscale Bitcoin Trust (GBTC), aims to generate income through actively managed call and put options on Bitcoin exchange-traded products (ETPs). The prospectus was originally filed with the US Securities and Exchange Commission (SEC) in January 2024.
According to the filing, the ETF will achieve its objectives by providing exposure to GBTC. Beyond that, it will also employ a covered call strategy. This means it will sell call options to generate income while holding Bitcoin or GBTC as collateral.
“The fund seeks to achieve its investment objective primarily through actively managed exposure to Grayscale Bitcoin Trust (GBTC) and the purchase and sale of a combination of call and put option contracts that utilize GBTC as the reference asset,” the January filing read.
James Seyffart, an ETF analyst at Bloomberg Intelligence, commented on the development. In his opinion, Grayscale is capitalizing on the approval for Bitcoin ETF options.
“Grayscale wasting no time after BTC ETF options approval. They’ve filed an updated prospectus for their Bitcoin Covered Call ETF (no ticker yet). The fund will offer exposure to GBTC and BTC while writing and/or buying options contracts on Bitcoin ETPs for income,” Seyffart remarked.
It comes after the US Securities and Exchange Commission’s (SEC) approval of options trading for spot Bitcoin ETFs. This regulatory milestone, announced last month, allows ETF issuers to integrate options strategies into their Bitcoin-focused funds. Among other benefits, this opens up new avenues for investment.
