Grayscale has launched the Ethereum Covered Call ETF, giving investors a way to earn income from Ether’s price swings. The fund, called ETCO, is built to provide exposure to the world’s second-largest cryptocurrency while turning its volatility into a steady stream of returns.
The firm explained that ETCO aims to generate current income, with a secondary goal of capturing gains linked to Ethereum’s market performance.
According to the press release, the strategy will use options on Ethereum exchange-traded products that track the token’s price. The move comes as Ethereum’s value has surged more than seventy percent over the past three months, sparking fresh interest in new products.
Krista Lynch, Senior Vice President of ETF Capital Markets at Grayscale, said the fund is designed to fit easily with an investor’s existing ETH exposure. “We know that investors are all unique with different needs and investment goals, and we’re excited to introduce this new ETF as part of our commitment to providing innovative, outcome-oriented solutions that meet them where they are,” she noted.
The ETF joins other income-focused products in Grayscale’s growing lineup, which includes the Bitcoin Covered Call ETF and the Premium Income ETF.
ETCO will focus on writing call options near current market prices, generating premiums that can then be distributed to shareholders. The company noted that this income-first approach could appeal to those seeking consistent cash flow.
Grayscale said the fund may use options linked to its Ethereum Trust ETF, ETHE, and the Ethereum Mini Trust ETF, ETH. Together, these funds hold billions of dollars in assets and are among the largest Ethereum products available. ETCO is set to make distributions every two weeks, in line with its income-focused strategy.
That said, this launch adds to Grayscale’s growing range of crypto ETFs. By applying a covered call approach to Ethereum, the company is extending its income-based offerings to investors already interested in the digital asset market.
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