Grayscale Submits Application for Bitcoin Covered Call ETF

Grayscale has taken a strategic step to enhance its operations in the Bitcoin ETF realm. The company recently submitted an application for an ETF, securing the right to purchase backed by Bitcoin with the SEC. This move unfolded mere hours after reports surfaced speculating on such an application.

The insured ETF introduces an intriguing aspect, allowing investors to sell their Bitcoin call options at a higher price. This enables them to generate additional income and mitigate potential hidden risks. From the buyer’s perspective, acquiring a stock at a predetermined price before a specific timeframe provides a unique investment opportunity.

Notably, the prospectus underscores that the fund will not directly invest in digital assets. Instead, it aims to achieve its investment objectives primarily through active management engagement with GBTC, signaling a strategic approach to navigating the digital asset landscape.

This comes a day after SEC Chairman Gary Gensler acknowledged that the outcome of Grayscale’s lawsuit against the SEC plays a pivotal role in approving a Bitcoin ETF for immediate trading. All 11 ETF registration applications have received approval from three out of the five SEC commissioners, including Gary Gensler, who has been skeptical about cryptocurrencies for years.

Chairman Gensler stated, “The Commission has not adequately explained its reasons for rejecting the proposed listing and trading of Grayscale’s fund. Therefore, the court has vacated the Grayscale Order and remanded the matter to the Commission. I believe the most sustainable path forward is approving the listing and trading of these immediate bitcoin ETF shares.”

The total trading volume for all newly introduced Bitcoin ETFs has reached $4.6 billion. Furthermore, Grayscale is leading the race with over 45% market share in trading volume, followed by BlackRock. This underscores the exceptionally high demand among investors for trading a fund holding Bitcoin on the stock market.