Grayscale Investments Files for Covered Call ETF
Grayscale Investments has submitted a filing for a covered call ETF that aims to generate income from GBTC, a day after receiving approval for its spot bitcoin ETF from the Securities and Exchange Commission (SEC). The proposed Grayscale Bitcoin Trust Covered Call ETF seeks to provide current income while allowing participation in the price return of GBTC, according to the filing. It should be noted that the fund will not directly invest in digital assets.
New Filing Follows Successful Launch of Grayscale’s Spot Bitcoin ETF
The new filing was made shortly after the launch of Grayscale’s spot bitcoin ETF, along with 10 other ETFs. The total trading volume for these products has exceeded $4 billion. Grayscale’s ETF leads with over $1.9 billion in trading volume, followed by BlackRock and Fidelity’s ETFs with $942 million and $628 million, respectively. Analysts suggest that much of the GBTC volume could be outflows as shareholders take profits or transition to funds with lower fees.
A Historic Move by SEC Chair Gary Gensler
The SEC approved 11 spot bitcoin ETFs, with SEC Chair Gary Gensler voting in favor of the products. This decision follows a ruling by three judges in a D.C. court earlier this year, which required the SEC to re-review Grayscale Investments’ bid for a spot bitcoin ETF. Gensler stated that it was time to move forward and approve the listing and trading of these spot bitcoin ETP shares.
Hot Take: Grayscale Expands Its Crypto Investment Offerings
Grayscale Investments continues to expand its cryptocurrency investment offerings with the filing of its covered call ETF. This move comes on the heels of successfully launching its spot bitcoin ETF, which has seen significant trading volume. The approval of multiple spot bitcoin ETFs by the SEC signals a positive regulatory environment for cryptocurrency investments. It remains to be seen how these new investment products will impact the market and investor behavior, but it is clear that Grayscale is taking advantage of the growing demand for crypto-related investment opportunities.
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