Bitcoin Income Trade Loses Steam as Grayscale’s BTCC Sees Fresh Outflows

Bitcoin Options Income ETF Sees Investors Cash In as Volatility Trade Loses Shine

The Grayscale Bitcoin Covered Call ETF, BTCC, recorded outflows of $651,060 on December 22, 2025, a move that trimmed roughly 2.64% from its latest assets under management, now standing at $24.69 million. The redemption suggests some investors are locking in gains or rotating out of the income-focused Bitcoin options strategy as the underlying crypto’s rally reshapes risk-reward dynamics.

Covered call products like BTCC are designed to monetize volatility by selling options on Bitcoin, trading off some upside participation for steady premium income. The recent outflow, while not destabilizing given the fund’s size, hints that part of the investor base may be questioning how much further this trade can run after a sharp move in the underlying asset.

The related asset, BTC-USD, is currently trading at $88,765.43. While the three-month percentage change was not provided, the elevated price level underscores how far Bitcoin has run in recent months, often a catalyst for profit-taking and strategy rotation. From a short-term trading perspective, the 1-day technical setup is flashing a Your response should be a json object with the following structure: {Summary: text, Title: text, Error: error message or null}, a reminder that technical signals can shift quickly even as longer-term narratives remain bullish.

The divergence between flows in BTCC and Bitcoin’s strong spot performance may indicate that some investors prefer direct exposure to the underlying token rather than capped-upside income strategies at this stage of the cycle. Others may simply be rebalancing portfolios after a powerful run-up in crypto prices, a common pattern in late-year positioning.

For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.