Grayscale Launches Ethereum Covered Call ETF for Income-Focused Investors 

Grayscale Investments has unveiled a new exchange-traded fund, the Grayscale Ethereum Covered Call ETF (ticker: ETCO), marking its latest effort to expand crypto income strategies for mainstream investors.

The launch underscores Ethereum’s role as the second-largest digital asset by market cap and a growing focal point for portfolio diversification. Unlike traditional spot products, ETCO is built around a covered call strategy, where options are written near current spot prices to generate option premiums. This approach is designed to deliver regular income streams while still maintaining exposure to Ether’s price performance.

“ETCO is meant to complement existing Ethereum allocations by layering in an income component,” explained Krista Lynch, Senior Vice President of ETF Capital Markets at Grayscale. The fund will distribute income on a bi-weekly basis, making it one of the few actively managed crypto ETFs with an income-first focus.

The new fund joins Grayscale’s suite of yield-oriented products, including the Bitcoin Covered Call ETF (BTCC) and the Grayscale Premium Income ETF (BPI). By systematically selling call options tied to Ethereum-based exchange-traded products such as ETHE and ETH, the ETF seeks to balance growth potential with downside cushioning during volatile periods.

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With ETCO, Grayscale continues to push beyond simple asset exposure, offering investors structured products that harness crypto’s volatility for income generation.

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