Grayscale Ethereum Covered Call ETF

The Grayscale Ethereum Covered Call ETF is an actively managed exchange-traded fund designed to provide structured, income-oriented exposure to Ethereum for investors. The fund primarily utilizes a covered call strategy—systematically selling call options on Ethereum-linked exchange-traded products—to capture option premiums, which are distributed to shareholders on a biweekly basis. This approach allows the ETF to harness Ethereum’s inherently high volatility as a means of generating steady cash flow, while still maintaining some linkage to the underlying asset’s price movements. Distinct from direct spot Ethereum products, the fund does not hold Ether itself, but rather invests in Ethereum-based ETPs and writes options close to prevailing market prices, thereby exchanging a portion of upside price potential for reliable premium income. ETCO targets investors seeking regular payouts, featuring an annual expense ratio of 0.66% and an operational structure intended to complement existing Ethereum allocations by layering in an income component. The fund illustrates the growing intersection of traditional options-based ETF structures and the digital assets ecosystem, providing a regulated alternative for those interested in income strategies within the cryptocurrency market.