ETHE Grayscale Ethereum Trust ETF

Grayscale, a leading crypto asset manager, today announced the launch of Grayscale® Bitcoin Covered Call ETF (Ticker: BTCC) and Grayscale® Bitcoin Premium Income ETF (Ticker: BPI) (the “Funds”). The two Funds are Grayscale’s newest exchange-traded funds (ETFs) which offer covered call writing strategies, seeking to provide investors the ability to access the volatility characteristics of Bitcoin as a differentiated source of income.

Grayscale® Bitcoin Covered Call ETF seeks to provide current income. The Fund’s secondary objective is to participate in the returns of Bitcoin through the use of options on Bitcoin exchange-traded products whose investment objectives are to, before fees and expenses, track the price performance of Bitcoin. The Bitcoin exchange-traded products include, but are not limited to, Grayscale Bitcoin Trust ETF (Ticker: GBTC) and Grayscale Bitcoin Mini Trust ETF (Ticker: BTC) (the “Bitcoin ETPs”). There can be no assurance that the Fund will achieve its investment objective. The Fund attempts to achieve its investment objective by systematically writing calls very close to spot prices. This strategy leverages Bitcoin's volatility to help prioritize income, which is then distributed to fund shareholders. By selling calls near spot prices, BTCC seeks to deliver a principal focus on income generation. This makes BTCC an income-first strategy, potentially ideal for investors seeking regular cash flows and high yielding opportunities. The option premiums collected in this type of strategy may also help cushion against market downturns, potentially leading to lower volatility during drawdowns.

In contrast, Grayscale® Bitcoin Premium Income ETF seeks to provide current income while maintaining prospects for capital appreciation through the use of options on Bitcoin exchange-traded products whose investment objectives are to, before fees and expenses, track the price performance of Bitcoin. The Bitcoin exchange-traded products include, but are not limited to, Grayscale Bitcoin Trust ETF (Ticker: GBTC) and Grayscale Bitcoin Mini Trust ETF (Ticker: BTC) (the “Bitcoin ETPs”). There can be no assurance that the Fund will achieve its investment objective. The Fund seeks to achieve this by systematically writing calls targeting strike prices that are well out-of-the-money. By focusing on this type of call writing strategy, BPI allows investors to participate in much of Bitcoin's upside potential while possibly benefiting from some dividend income. This blended approach provides investors with an opportunity to participate in the capital appreciation potential of Bitcoin with the benefits of income. Both Funds are actively managed, fully options based, and will aim to distribute income monthly.

“Grayscale® Bitcoin Covered Call ETF may complement an investors existing Bitcoin exposure by adding income, while Grayscale® Bitcoin Premium Income ETF offers an alternative to Bitcoin ownership, aiming to balance upside participation and income generation for investors,” said David LaValle, Global Head of ETFs at Grayscale. "We understand that every investor has unique needs, and we're excited to offer these new products that not only may capture and deliver income but also offer differentiated outcomes and behavioral characteristics tailored to their specific goals."

For more information about BTCC and BPI, please visit: https://etfs.grayscale.com/btcc or https://etfs.grayscale.com/bpi

About Grayscale

Grayscale enables investors to access the digital economy through a family of future-forward investment products. Founded in 2013, Grayscale has a decade-long track record and deep expertise as an asset management firm focused on crypto investing. Investors, advisors, and allocators turn to Grayscale for single asset, diversified, and thematic exposure. For more information, please follow @Grayscale or visit grayscale.com.

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Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Funds, please call (866)-775-0313 or visit our website at etfs.grayscale.com/bpi and etfs.grayscale.com/btcc. Read the prospectuses or summary prospectuses carefully before investing.

Grayscale Bitcoin Covered Calls ETF and Grayscale Bitcoin Premium Income ETF (collectively the “Funds”) will not invest in digital assets directly. The Funds also will not invest in initial coin offerings. The Funds will, however, have indirect exposure to digital assets by virtue of its investments in derivatives on exchange-traded vehicles that hold digital assets as investments. Because the Funds will not invest directly in any digital assets, they may not track price movements of any digital assets.

Investing involves risk and possible loss of principal. There is no guarantee the investment strategies will be successful. The Funds are considered to be non-diversified. The Funds are actively managed and their performance reflects the investment decisions that the Adviser makes for the Funds.

Derivative Instruments. The Funds will invest in options, a type of derivative instrument. Derivatives can be more sensitive to changes in interest rates or to sudden fluctuations in market prices than conventional securities, which can result in greater losses for the Funds. In addition, the prices of the derivative instruments and the prices of underlying securities, interest rates or currencies they are designed to reflect may not move together as expected. Derivatives are usually traded on margin, which may subject the Funds to margin calls. Margin calls may force the Funds to liquidate assets.

Options Risk. The use of options involves investment strategies and risks different from those associated with ordinary portfolio securities transactions and depends on the ability of the Funds’ portfolio managers to forecast market movements correctly. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument. The effective use of options also depends on the Funds’ ability to terminate option positions at times deemed desirable to do so. There is no assurance that the Funds will be able to effect closing transactions at any particular time or at an acceptable price.

Covered Call Option Writing Risk. By writing covered call options in return for the receipt of premiums, the Fund will give up the opportunity to benefit from potential increases in the value of the security above the exercise prices of such options, but will continue to bear the risk of declines in the value of the underlying security. The premiums received from the options may not be sufficient to offset any losses sustained from the volatility of the underlying stocks over time. As a result, the risks associated with writing covered call options may be similar to the risks associated with writing put options. In addition, the Funds’ ability to sell the securities underlying the options will be limited while the options are in effect unless the Funds cancel out the option positions through the purchase of offsetting identical options prior to the expiration of the written options.

Digital Assets Risk. Digital assets, such as bitcoin, are assets designed to act as a medium of exchange, though some arguably have not achieved that purpose. Digital assets are an emerging asset class. Digital assets generally operate without a central authority (such as a bank) and are not backed by any government. Digital assets are not legal tender. Federal, state and/or foreign governments may restrict the use and exchange of digital assets, and regulation in the United States is still developing. 

Bitcoin ETPs Investment Risk. Bitcoin ETPs Investment Risk. The Funds intend to obtain investment exposure to Bitcoin, indirectly via synthetic exposure to Bitcoin ETPs through derivatives. The price of Bitcoin ETPs shares may not directly correspond to the price of any digital currency and are highly volatile. Such investment also exposes the Funds to all of the risks related to digital currencies discussed herein. The shares of Bitcoin ETPs are not registered under the Investment Company Act of 1940, or any state securities laws, and therefore such an investment will not benefit from the protections and restrictions of such laws.

Of the Bitcoin ETPs, GBTC and BTC are sponsored by an affiliate of the Funds’ Adviser that receives a fee in exchange for assuming certain administrative and marketing expenses of GBTC and BTC. While the Funds do not invest directly in GBTC and BTC, the Funds’ strategies may result in additional purchases of shares of GBTC and BTC by options holders, which will benefit the Adviser and its affiliate in terms of the fee being received on these products.

Liquidity Risk. The market for Bitcoin ETP options is still developing and may be subject to a period of illiquidity.  

New Fund Risk. The Funds are recently organized investment companies with no operating history. 

The Funds are distributed by Foreside Fund Services, LLC and Grayscale Advisors, LLC (“GSA”) is the adviser. Foreside is not related to GSA or its affiliates.