Grayscale, the world’s largest digital-asset investment platform, today rolled out its latest exchange-traded fund: the Grayscale® Ethereum Covered Call ETF (Ticker: ETCO). The actively managed fund uses a covered-call writing strategy intended to generate current income while maintaining a link to Ethereum’s price performance, a pitch aimed at investors who want Ethereum exposure with an income component.
Ethereum, the second-largest investable crypto by market cap, is described by Grayscale as a “compelling diversification play” for digital-asset allocations. ETCO seeks to turn some of Ethereum’s volatility into potential yield by systematically writing call options near current spot prices on Ethereum exchange-traded products (ETPs) that track the token before fees and expenses.
“Grayscale® Ethereum Covered Call ETF is designed to complement an investor’s existing Ethereum exposure by adding an…
