Grayscale Launches New Ethereum ETF: Turning Volatility into Income

Grayscale has introduced a new investment product, the Grayscale Ethereum Covered Call ETF (ETCO), aiming to generate consistent income for investors while managing Ethereum’s volatility. Unlike traditional ETFs that hold ETH directly, ETCO utilizes a covered call options strategy on existing Ethereum-linked funds like Grayscale Ethereum Trust (ETHE) and Ethereum Mini Trust (ETH). By writing options near current prices, the fund seeks to generate additional yield while offering bi-weekly dividend payouts. This income-focused approach offers investors protection from market downturns by mitigating downside risks.