Grayscale Launches Ethereum Covered Call ETF as Money Rushes Into ETH Funds

Grayscale, the world’s largest integer plus concern manager, has launched a caller exchange-traded money that ties into ether's (ETH) caller marketplace momentum.

The Grayscale Ethereum Covered Call ETF (ETCO) began trading Thursday, offering vulnerability to ether with an options-writing strategy designed to make dependable income.

The motorboat comes arsenic ether, the autochthonal token of the Ethereum blockchain, has outperformed bitcoin (BTC) successful 2025, rising 34% year-to-date versus BTC's 20%

Behind the gains is renewed retail and organization interest, evidenced successful August by surging inflows into the spot ETH ETFs that dwarfed those which headed into the BTC funds.

Wall Street firms person progressively adopted the blockchain to streamline processes successful their trading and colony systems, creating a travel of superior into the plus that has lifted request crossed some spot and derivative markets.

ETCO aims to seizure that involvement portion providing a buffer against volatility. The money systematically sells telephone options connected Ethereum-linked exchange-traded products specified arsenic the Grayscale Ethereum Trust ETF (ETHE) and Grayscale Ethereum Mini Trust ETF (ETH). The premiums generated from those options are distributed to shareholders connected a bi-weekly basis, making ETCO an “income-first” strategy that whitethorn entreaty to investors seeking currency flow.

“Grayscale Ethereum Covered Call ETF is designed to complement an investor’s existing Ethereum vulnerability by adding an income component,” said Krista Lynch, elder vice president of ETF superior markets astatine Grayscale.

Covered telephone strategies are communal successful equities, wherever they assistance investors monetize volatility portion perchance reducing downside risk. Grayscale is applying the aforesaid logic to crypto markets, wherever ether’s terms swings and liquidity make opportunities for enactment premiums.

The fund’s superior extremity is generating existent income, with a secondary purpose of capturing ether-linked returns. By penning telephone options adjacent to the spot price, ETCO seeks to crook the token’s volatility — which often deters accepted investors — into a root of yield.

This merchandise joins a increasing enactment of income-focused crypto funds astatine Grayscale, which already includes the Bitcoin Covered Call ETF (BTCC) and the Premium Income ETF (BPI).