Bitcoin Income Play Loses Its Shine as BTCC Suffers Sharp One-Day Outflows

Bitcoin Options Income Product Sees Investors Head for the Exit as Volatility Bites

The Grayscale Bitcoin Covered Call ETF, BTCC, recorded net outflows of $1,747,576 on January 05, 2026, a sizeable move that shaved roughly 7.66% off its asset base in a single day. The options-based Bitcoin strategy now manages $22.83 million in assets under management (AUM), underscoring how quickly capital can shift when sentiment around crypto-linked yield products turns cautious.

The magnitude of the withdrawal relative to AUM suggests more than routine profit-taking. Covered call ETFs typically attract investors seeking income and dampened volatility, but when the underlying asset is under pressure, these structures can lose their appeal. With nearly 8% of the fund’s capital exiting in one session, some holders appear to be reassessing whether option premiums are sufficient compensation for Bitcoin’s drawdowns and opportunity cost.

The related asset, BTC-USD, is currently trading at $91,567.26, having fallen about 23.62% over the past three months. Despite that notable decline, short-term signals have turned more constructive, with a 1-day technical stance of Buy. The divergence between medium-term price weakness and a near-term bullish signal highlights the tactical tension facing investors: whether to lean into a potential rebound in spot Bitcoin or continue to seek option income to cushion further downside.

For BTCC, sustained outflows could pressure liquidity and trading spreads, even as some income-focused investors may see an opportunity if volatility—and therefore option premiums—remains elevated. For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.