Grayscale Bitcoin Trust (BTC) (GBTC) Covered Calls

The Grayscale Bitcoin Trust ETF is one of the world’s largest and most established bitcoin investment vehicles. Originally launched as a private trust in 2013, it now operates as an exchange-traded fund designed to track the market price of bitcoin, less fees and expenses. It provides a familiar, regulated way for investors to gain exposure to bitcoin’s price movements within a traditional brokerage account, with its holdings kept in institutional-grade cold storage by a third-party custodian.

You can sell covered calls on Grayscale Bitcoin Trust (BTC) to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for GBTC (prices last updated Fri 4:16 PM ET):

Grayscale Bitcoin Trust (BTC) (GBTC) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
54.63 +4.97 54.59 54.63 5.9M - 11
Covered Calls For Grayscale Bitcoin Trust (BTC) (GBTC)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 55 2.25 52.38 4.3% 105%
Mar 20 55 3.60 51.03 7.1% 60.3%
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Extended Business Description

Grayscale Bitcoin Trust ETF is a pioneering digital asset investment vehicle that transitioned into a spot bitcoin ETF in early 2024. Sponsored by Grayscale Investments, a subsidiary of Digital Currency Group, the trust seeks to reflect the value of bitcoin held by the fund, determined by the CoinDesk Bitcoin Price Index (XBX). As the first publicly-traded bitcoin fund in the U.S., GBTC offers a long operating history and deep liquidity for institutional and individual investors.

Core Business and Products

  1. Physically Backed Exposure: The trust is solely and passively invested in bitcoin. Unlike futures-based products, GBTC holds the actual digital asset, providing direct correlation to the spot price of bitcoin without the "roll costs" associated with derivatives.
  2. Institutional Custody: The fund’s assets are held in segregated accounts with Coinbase Custody Trust Company, LLC. These assets are primarily kept in offline "cold storage" to mitigate the risks of hacking and digital theft.
  3. Market Liquidity: Due to its significant assets under management and long-standing presence, GBTC remains a primary barometer for investor sentiment and a highly liquid instrument for those trading large blocks of bitcoin exposure.

Competitive Landscape

While GBTC was long the only major vehicle for bitcoin exposure, it now competes in a crowded field of spot bitcoin ETFs. It faces significant competition from the iShares Bitcoin Trust and the Fidelity Wise Origin Bitcoin Fund, which often feature lower expense ratios. To address fee-sensitive investors, Grayscale also launched the Grayscale Bitcoin Mini Trust. Other direct competitors include the ARK 21Shares Bitcoin ETF and the Bitwise Bitcoin ETF. In the broader crypto-equity space, it is often compared to Strategy Inc (MicroStrategy) and the futures-based ProShares Bitcoin Strategy ETF.

Strategic Outlook and Innovation

The fund is navigating a transition from a legacy trust to a competitive ETF, focusing on maintaining its status as a premier liquidity provider for the digital asset class. A primary strategic priority is the defense of its market share through its "mini trust" spin-off and the continued integration of the fund into sophisticated financial products, such as listed options. Innovation efforts are directed toward providing deeper research and transparency into the "four-year cycle" of bitcoin and its role as an alternative store of value in an inflationary environment. As global regulatory clarity improves, the trust is positioning itself as an essential pillar of the "institutional era" of crypto, where digital assets are a standard component of diversified portfolios. By leveraging its decade-long track record and the expertise of its specialist sponsor, GBTC aims to bridge the gap between traditional capital markets and the burgeoning decentralized economy.