Grayscale has launched the first covered call ETF on Ethereum, providing investors with a way to generate stable income alongside cryptocurrency investments.
What Makes ETCO Special?
The ETCO ETF is an income-focused fund that pays dividends every two weeks, specifically on the 15th and 30th of each month. It employs a strategy of writing call options on Grayscale's ETH products, like ETHE and ETH, leveraging Ethereum’s price volatility for additional income.
Adding Income to Ethereum Exposure
Krista Lynch, Senior Vice President of ETF Capital Markets at Grayscale, highlighted that the fund is an addition to current Ethereum exposure with an income aspect. ETCO provides an option for both individual and institutional investors to diversify their portfolios.
Part of Grayscale’s Growing Suite
The introduction of the Ethereum Covered Call ETF adds to Grayscale's suite of income-oriented funds, which already includes the Bitcoin Covered Call ETF (BTCC) and the Premium Income ETF (BPI). This launch showcases Grayscale's commitment to innovation and meeting the needs of various types of investors.
The launch of the ETCO ETF marks a significant milestone for Grayscale and crypto investors, offering a new way to generate income from investments in Ethereum.
