A cryptocurrency asset management firm has introduced two new exchange-traded funds (ETFs) designed to provide investors with a unique income source by utilizing bitcoin’s (BTC) intrinsic volatility.
The funds will commence trading on the New York Stock Exchange on Wednesday.
Named the Bitcoin Covered Call ETF (BTCC) and the Bitcoin Premium Income ETF (BPI), these offerings implement covered call strategies, where call options are sold to earn income from the premiums received.
Call options are derivative contracts that speculate on the asset’s price increase, granting the buyer the right—though not the obligation—to purchase the asset at a set price within a specified timeframe.
BTCC aims to write calls closely aligned with spot prices, catering to investors looking for a consistent cash flow, while the premiums from these options may also serve as a buffer in the event of market declines.
Conversely, BPI will focus on call options with strike prices significantly above the current market price. This strategy will enable investors to capitalize on much of bitcoin’s upward movement while potentially enjoying some dividend income, as noted in a recent announcement.
The options contracts for both ETFs will relate to other bitcoin ETFs, including the firm’s own Bitcoin Trust (GBTC) and Bitcoin Mini Trust (BTC).
Following a substantial influx of institutional investments in BTC through spot ETFs since their launch in January 2024, the volatility of bitcoin remains persistently high.
After experiencing a remarkable 48% increase in the fourth quarter, the leading cryptocurrency started 2025 with a 12% decline during the typically bullish first quarter. Notably, bitcoin had surged by 72% and 69% in the first quarters of 2023 and 2024, respectively, according to data.
As institutional interest in bitcoin continues to grow, it is likely that there will be an increased demand for products that provide unique income avenues to counterbalance the inherent volatility of the asset.