The digital asset management giant Grayscale has launched a new options-based Ethereum (ETH) exchange-traded fund (ETF).
Grayscale’s new “Ethereum Covered Call ETF” (ETCO) aims to provide investors with exposure to ETH’s volatility characteristics through call options near the current spot prices of Ethereum ETFs.
The new covered call ETF, which doesn’t invest in digital assets directly, prioritizes income generation and will distribute dividends twice per month. It will invest in options on Grayscale’s Ethereum Trust ETF (ETHE) and the firm’s Ethereum Mini Trust ETF (ETH).
Krista Lynch, Grayscale’s senior vice president of ETF Capital Markets, says the new product’s income component is designed to complement an investor’s existing Ethereum exposure.
ETCO is trading at $35.01 at time of writing and currently has around $1.4 million worth of assets under management (AUM). The product’s total expense ratio is 0.66%.
The asset management giant previously rolled out a Bitcoin Covered Call ETF (BTCC) in April.
ETH is trading at $4,345 at time of writing. The second-ranked crypto asset by market cap is down nearly 3% in the past 24 hours and more than 3.5% in the past week, though ETH is up more than 20% in the past month and hit a new all-time high of $4,946 on August 24th.
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