Grayscale, the world’s largest digital asset funding supervisor, has launched a brand new exchange-traded fund that ties into ether’s (ETH) current market momentum.
The Grayscale Ethereum Lined Name ETF (ETCO) started buying and selling Thursday, providing publicity to ether with an options-writing technique designed to generate regular earnings.
The launch comes as ether, the native token of the Ethereum blockchain, has outperformed bitcoin in 2025, rising 34% year-to-date versus BTC’s 20%
Behind the features is renewed retail and institutional curiosity, evidenced in August by surging inflows into the spot ETH ETFs that dwarfed these which headed into the BTC funds.
Wall Road companies have more and more adopted the blockchain to streamline processes of their buying and selling and settlement programs, making a circulate of capital into the asset that has lifted demand throughout each spot and by-product markets.
ETCO goals to seize that curiosity whereas offering a buffer in opposition to volatility. The fund systematically sells name choices on Ethereum-linked exchange-traded merchandise such because the Grayscale Ethereum Belief ETF (Which) and Grayscale Ethereum Mini Belief ETF (ETH). The premiums generated from these choices are distributed to shareholders on a bi-weekly foundation, making ETCO an “income-first” technique which will attraction to buyers looking for money circulate.
“Grayscale Ethereum Lined Name ETF is designed to enhance an investor’s current Ethereum publicity by including an earnings part,” stated Krista Lynch, senior vp of ETF capital markets at Grayscale.
Lined name methods are frequent in equities, the place they assist buyers monetize volatility whereas doubtlessly decreasing draw back threat. Grayscale is making use of the identical logic to crypto markets, the place ether’s value swings and liquidity create alternatives for choice premiums.
The fund’s major objective is producing present earnings, with a secondary intention of capturing ether-linked returns. By writing name choices near the spot value, ETCO seeks to show the token’s volatility — which frequently deters conventional buyers — right into a supply of yield.
This product joins a rising line of income-focused crypto funds at Grayscale, which already consists of the Bitcoin Lined Name ETF (BTCC) and the Premium Revenue ETF (BPI).
