Grayscale Seeks SEC Approval for Bitcoin Covered Call ETF
Grayscale Investments has taken a step forward by introducing a unique covered call exchange-traded fund (ETF). This move follows the recent conversion of Grayscale Bitcoin Trust (GBTC) into a spot bitcoin ETF. announcementThis statement, made just after the firm received approval from the Securities and Exchange Commission (SEC), emphasizes Grayscale’s determination to expand its offerings in the cryptocurrency market.
ETF Focuses on Income and Price Participation
The newly launched Grayscale Bitcoin Trust Covered Call ETF aims to generate current income while allowing investors to participate in the price movement of the Grayscale Bitcoin Trust. This approach does not involve direct investments in digital assets.
Instead, it utilizes an actively managed strategy focused on call and put options, with GBTC as the primary reference asset. This method balances income generation with potential capital appreciation by providing investors with an alternative way to interact with the cryptocurrency market.
Grayscale Leads Post SEC Decision
Grayscale’s entry into the covered call ETF space follows the successful launch of its spot bitcoin ETF, which began trading on Thursday along with 10 other similar products. These ETFs have already seen a combined trading volume of over $4 billion with Grayscale. lead the herdCoingape reported. According to data from Yahoo Finance, the firm’s ETF recorded a trading volume of over $1.9 billion, outpacing rivals such as BlackRock and Fidelity.
The SEC’s recent approval of 11 spot Bitcoin ETFs marks a historic turning point in regulation. Additionally, SEC Chairman Gary Gensler’s decision green light these products align with the agency’s evolving stance on cryptocurrency investments. This development reflects a broader acceptance and recognition of digital assets in mainstream finance.
Also read: Bitcoin (BTC) Price Sees Slow Gains Despite Spot ETF Excitement
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Kelvin is a distinguished author specializing in crypto and finance, with a bachelor’s degree in Actuarial Science. Known for her sharp analysis and insightful content, she is fluent in English and specializes in comprehensive research and on-time delivery.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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