Grayscale has introduced an exciting new Ethereum covered call ETF you should look into. It is the first of its kind that provides investors with Ethereum exposure and stable income.
Grayscale designed the Ethereum Covered Call ETF (Ticker: ETCO) with income in mind.
What Makes ETCO Special?
For starters, it’s an income-first fund. The ETF pays out dividends every two weeks on the 15th and 30th of each month. That’s much more frequent than most traditional investment funds. It does this by writing call options on Grayscale’s ETH products, like ETHE and ETH. It takes advantage of Ethereum’s price volatility to generate extra income for its investors.
Introducing the Grayscale Ethereum Covered Call ETF (ticker: $ETCO), strategically designed to maximize potential income generation on Ether exposure and distribute dividends biweekly.
See important disclosures or learn more here ⬇️ https://t.co/ckGhjxi8qi pic.twitter.com/OzSgKisSHH
— Grayscale (@Grayscale) September 4, 2025
Adding Income to Ethereum Exposure
Krista Lynch, Senior Vice President of ETF Capital Markets at Grayscale, explained it well. “The fund is an addition to current Ethereum exposure with an income aspect.” Grayscale developed ETCO as it provides an option to investors to tailor their portfolios to meet their various needs and objectives.
Prior to the launch of spot Bitcoin ETPs in January 2024, crypto investors largely fell into two extremes:
✅ Self-directed retail traders using exchange platforms
✅ Sophisticated hedge funds structuring niche crypto exposureThe introduction of spot Bitcoin ETPs has opened… pic.twitter.com/cVrXvFiUoy
— Grayscale (@Grayscale) August 29, 2025
The plan itself is simple. ETCO is a systematic seller of call options around existing Ethereum spot prices. The fund pays the shareholders the premiums they have earned on those sales. It not only provides a consistent stream of cash but can also help mitigate the effects of a bear market on investors. The additional income will help compensate for some of the losses in case ETH prices decrease.
🚨 Grayscale just launched the world’s first Ethereum Covered Call ETF, $ETCO, featuring biweekly dividends on $ETH exposure
Here’s how:
– Gives investors ETH exposure + biweekly dividends
– Pays out twice per month (15th & 30th)
– Uses covered call strategies on Grayscale’s ETH… pic.twitter.com/wXVB35XnLY— Crypto-Gucci.eth ᵍᵐ🦇🔊 (@CryptoGucci) September 4, 2025
Part of Grayscale’s Growing Suite
ETCO joins Grayscale’s expanding range of income-oriented funds. The lineup already includes the Bitcoin Covered Call ETF (BTCC) and the Premium Income ETF (BPI). This is an innovation that Grayscale demonstrates with this launch. The company is targeting individual as well as institutional investors.
UPDATE: @Grayscale wasting no time after BTC ETF options approval. They’ve filed an updated prospectus for their #Bitcoin Covered Call ETF (no ticker yet)
The fund will offer exposure to $GBTC & $BTC while writing &/or buying options contracts on Bitcoin ETPs for income pic.twitter.com/7psSyLSU8Z
— James Seyffart (@JSeyff) November 19, 2024
The introduction of the Ethereum Covered Call ETF is yet another achievement for Grayscale and crypto investors. It’s a means of exposure to Ethereum, together with the usual biweekly dividends. ETCO may be worth considering if you’re seeking growth potential and consistent income.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies presented are the thoughts and opinions of the writer/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments; therefore, please conduct your due diligence. Copyright Altcoin Buzz Pte Ltd.
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