Grayscale introduced ETCO, a new Ethereum Covered Call ETF, employing an options-writing strategy on Ethereum-linked products like ETHE and ETH. The ETF transforms ETH’s volatility into a reliable income source for investors seeking steady cash flow.
In 2025, ETH achieved a 34% gain year-to-date compared to BTC’s 20%. This strong performance, combined with significant inflows from both retail and institutional investors, has shifted market dynamics in favor of ETH funds.
The ETF distributes premiums collected from sold options on a bi-weekly basis. Krista Lynch from Grayscale stated that ETCO complements investors’ ETH exposure by adding an income component, adapting a traditional equities covered call strategy to crypto.
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