Grayscale to Introduce Bitcoin ETF Options Amid Growing Investor Demand

Grayscale Investments, a leading crypto asset manager, is set to launch options trading for its spot Bitcoin ETFs today, capitalizing on rising investor interest in such financial products.

The announcement comes on the heels of BlackRock’s iShares Bitcoin Trust (IBIT) recording unprecedented activity on its first day of options trading, propelling Bitcoin to a fresh all-time high.

Grayscale plans to introduce options trading on its flagship funds, including the Grayscale Bitcoin Trust (GBTC) and Bitcoin Mini Trust (BTC), as part of its initiative to “further develop the ecosystem around our US-listed Bitcoin ETPs.” This move follows the Options Clearing Corporation’s (OCC) recent approval of Bitcoin ETF options.

In response to the OCC’s decision, Grayscale filed an updated prospectus for its Bitcoin Covered Call ETF on January 11. The fund will employ a covered call strategy, generating income by writing and purchasing options contracts on Bitcoin exchange-traded products (ETPs) while holding Bitcoin or GBTC as collateral.

Bloomberg ETF analyst James Seyffart highlighted Grayscale’s rapid action following the OCC’s clearance, noting on X that the asset manager wasted no time filing its prospectus. According to Seyffart, the fund offers exposure to $GBTC and $BTC while leveraging options contracts for additional income.

Grayscale’s launch follows the extraordinary debut of BlackRock’s IBIT options, which achieved a staggering $1.9 billion in notional exposure on its first trading day. Over 354,000 contracts were exchanged, with calls outnumbering puts by a 4.4:1 ratio—indicating significant investor confidence in Bitcoin’s upward trajectory.

Bitcoin’s surge to $94,041 was likely driven in part by this trading activity. Bloomberg’s senior ETF analyst Eric Balchunas characterized IBIT’s trading volume as “unprecedented” for any ETF’s first day, comparing it to ProShares’ Bitcoin Futures ETF (BITO), which managed $363 million in activity during its launch four years ago.

Grayscale’s options trading rollout comes a year after its landmark legal victory against the SEC. In August 2023, the U.S. Court of Appeals directed the SEC to reconsider its rejection of Grayscale’s proposal to convert its Bitcoin Trust into a spot ETF—a decision that has since paved the way for broader crypto ETF adoption.

With momentum building across the crypto investment landscape, Grayscale’s latest move underscores its commitment to shaping the future of Bitcoin-focused financial products