Investors Dial Back Yield Play as Grayscale’s Bitcoin Covered-Call ETF Sees Notable Outflows

Bitcoin Options Play Sees Investors Pull Back as Covered-Call ETF Faces Outflows

The Grayscale Bitcoin Covered Call ETF, BTCC, recorded fresh outflows of $651,060 on December 22, 2025, a notable move that trimmed risk exposure in a volatile crypto backdrop. With assets under management now standing at $24.75 million, the latest redemption represented roughly 2.63% of the fund’s AUM, signaling a meaningful—though not yet panicked—vote of caution from investors in the income-focused bitcoin strategy.

The ETF, which seeks to generate yield by writing covered calls on bitcoin exposure, sits at the crossroads of two powerful currents: heightened option-implied volatility and a spot market that has been trending lower for months. The recent outflows suggest some investors may be questioning the trade-off between option premium income and capped upside in a market where direction has turned negative but remains highly unstable.

The related asset, BTC-USD, is currently trading at $87,952.01, having shed about 23.43% over the past three months. Despite that steep pullback, short-term signals remain indecisive, with a 1-day technical stance of Hold. That mixed picture—sharp medium-term downside but no clear near-term trend—helps explain why some investors may be rotating out of a yield-harvesting product like BTCC in favor of either staying on the sidelines or taking more directional bets.

For now, the scale of outflows is significant enough to underscore waning confidence in covered-call bitcoin strategies but not yet large enough to trigger broader concerns about ETF structure or liquidity. If bitcoin’s correction deepens or volatility spikes again, flows into BTCC will offer a telling gauge of whether investors prefer consistent option income or the flexibility to capture any future rebound in full.

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