Major Cryptocurrency Asset Manager Grassscale Investments announced two new bitcoin result-oriented exchange-traded funds (ETFs).
According to April 2 AnnouncementThe new products are Grassscale bitcoin cover call ETF (BTCC) and Grassscale Bitcoin Premium Income ETF (BPI). According to an email sent to Cointelegraph, two new bitcoins (BTC) funds are to generate revenue using BTC instability:
“Both strategies can be considered as an alternative income stream that is less correlated from traditional income-oriented investments.”
A complex derived product
Bitcoin cover call product wants to capture the highest premium and maximize possible income. Grassscale suggests that it can serve as a complement to bitcoin exposure.
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Fund’s strategy involves writing a call from very close to the spot prices systematically. It is expected that, due to historically high volatility of bitcoin, it will generate income through the paid call generation.
On the other hand, Bitcoin Premium Income Products wants to balance reversal partnership with a degree of income generation. This is to act as an alternative to the ownership of bitcoin and wants balance between growth and income creation.
The fund systematically targets the strike prices targeting out-of-the-money on bitcoin ETFs, including the Grassscale Bitcoin Trust (GBTC) and the Grassscale Bitcoin Mini Trust (BTC). The announcement reads:
“By focusing on this type of call writing strategy, BPI allows investors to participate in the reverse capacity of bitcoin while benefiting from certain dividend income.”
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Grassscale Investments have promised that both new products will allow for a differential source of revenue that “provides an unrelated source of income for investors.” In addition, the new derivatives will have the facility of monthly distribution and systematic option management.
Just the latest granscale filing
Earlier this week, Grassscael also filed to list an exchange-traded fund (ETF) having a diverse basket of spot cryptocurrency. This new product includes bitcoin, ether (ETH), XRP, Solan (Sol) and Cardano (ADA).
At the end of March, the US Stock Exchange Nasdac also filed the US Securities and Exchange Commission (SEC), seeking permission to list the Grassscale Investments Spot Evelancho ETFs. Grassscale’s website Lists 28 crypto products, 25 of which are single-asset derivatives, and three diverse.
Grassscale is also one of the property managers who are currently waiting for the approval of its XRP spot ETFs as well as other products. Among those products, we can find Spot Cardano ETF filing and its Litcoin Trust Conversion into an ETF.
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