Ethereum Options Play Draws Fresh Cash as Grayscale’s Covered Call ETF Sees Big Inflow
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The Grayscale Ethereum Covered Call ETF, ETCO, attracted a sizeable inflow of $1,763,595 on January 06, 2026, a move that lifted assets under management to $8,622,020. The latest subscription equals roughly 20.5% of the fund’s AUM, a striking one-day swing that signals renewed investor interest in income-oriented Ethereum strategies despite a softer underlying market.
Such a large flow relative to fund size suggests investors are leaning into covered-call structures as a way to stay exposed to Ethereum while attempting to buffer volatility and generate option premium. For a young, niche product, a single-day intake of more than one-fifth of total assets can mark an inflection point in scale and liquidity, potentially tightening spreads and making the ETF more attractive to additional institutional traders.
The related asset, ETH-USD, is currently trading around $3,196.44, down about 26.6% over the past three months, underscoring the challenging backdrop that has pushed some investors toward defensive or yield-enhancing crypto strategies. Short-term sentiment, however, appears more balanced, with the 1-day technical outlook flashing a cautious Hold signal rather than a clear directional call.
The sharp inflow into ETCO against a backdrop of medium-term price weakness in Ethereum highlights how investors are increasingly using derivatives-based ETFs to fine-tune risk and income within their digital asset exposure. For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.