Bitcoin Income Play Sees Investors Cash Out as Grayscale’s Covered Call ETF Faces Fresh Outflows
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
The Grayscale Bitcoin Covered Call ETF, BTCC, recorded net outflows of $865,060 on December 16, 2025, a meaningful move equivalent to about 3.5% of its latest reported assets under management of $24.73 million. The withdrawal underscores investor caution around yield-oriented Bitcoin strategies at a time when the underlying crypto asset remains under pressure.
Unlike spot Bitcoin funds that target pure price exposure, BTCC aims to generate income by writing covered calls on Bitcoin, effectively trading some upside potential for option premium. The latest redemption suggests that a segment of investors may be questioning the trade-off between income and capital appreciation as volatility in Bitcoin prices persists.
The related asset, BTC-USD, is currently trading around $88,186.71, having dropped roughly 23.8% over the past three months. Short-term sentiment remains fragile, with the 1-day technical signal flashing Sell. That negative reading aligns with BTCC’s outflows, as risk-off positioning across crypto derivatives and income strategies appears to be gaining traction.
Still, some market participants may see the combination of lower prices and heightened volatility as fertile ground for options-based approaches like covered call ETFs, particularly if Bitcoin stabilizes in a range. For now, however, BTCC’s latest redemption highlights the uneasy balance investors are trying to strike between capturing option income and weathering drawdowns in the world’s largest cryptocurrency.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.