Grayscale, the world’s largest investment manager for Digital Aktiv, has launched a new stock exchange fund that binds to Ether’s (ETH) recent Market Momentum.
Grayscale Ethereum-covered Call Etf (ETCO) started shopping on Thursday and offered exposure to ether with an option-writing strategy designed to generate stable income.
The launch comes as ether, the native token of Ethereum Blockchain, has surpassed Bitcoin (BTC) in 2025, which increases 34% years to date against BTC’s 20%
Behind the winnings have been renewed retail and institutional interest made in August by increasing the inflow to the site ETFs that dwarfed those who set the course in the BTC funds.
Wall Street companies have increasingly adopted blockchain to streamline processes in their trading and settlement systems, creating a stream of capital to the asset that has lifted demand across both spot and derivative markets.
Etco aims to capture this interest while providing a buffer against volatility. The fund sells systematic call options on Ethereum-bound stock exchange products such as GRAYSCALE ETHEREUM TRUST ETF (ETHE) and GRAYSCALE ETHEREUM MINI TRUST ETF (ETH). The prizes generated from these options are distributed to the shareholders of two weekly, making Etco a “income-first” strategy that can appeal to investors seeking cash flow.
“Grayscale Ethereum Covered Call Etf is designed to supplement an investor’s existing Ethereum exposure by adding an income component,” said Krista Lynch, senior vice president of ETF Capital Markets on Grayscale.
Covered call strategies are common in stocks where they help investors make money on volatility while potentially reducing downward risk. Grayscale uses the same logic in crypto markets, where Ether’s price fluctuations and liquidity create options for option prizes.
The fund’s primary goal is to generate the current income with a secondary goal of capturing Ether -bound returns. By writing call options close to the spot price, Etco tries to reverse the token’s volatility – which often discourages traditional investors – to a source of yield.
This product endorses a growing line of income-focused crypto-fedes on Grayscale, which already includes the Bitcoin-covered Call ETF (BTCC) and Premium Income Etf (BPI).
