Bitcoin Options Play Sees Chill: Grayscale’s Covered Call ETF Hit by Outflows
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The Grayscale Bitcoin Covered Call ETF, BTCC, recorded net outflows of $865,060 on December 16, 2025, a notable move for a fund with approximately $25.08 million in assets under management (AUM). The latest redemption represents about 3.45% of BTCC’s total AUM, signaling a meaningful pullback from investors in a niche product designed to generate income from Bitcoin’s volatility.
The timing of the outflows aligns with a difficult stretch for the fund’s underlying asset, Bitcoin. The related asset, BTC-USD, is currently trading around $88,041.06. Over the past three months, Bitcoin has shed roughly 24.85% of its value, erasing a significant portion of prior gains and testing investor conviction in yield-focused strategies tied to the cryptocurrency.
From a technical standpoint, the short-term picture remains bearish. The one-day trading signal on Bitcoin is flashing a Strong Sell, underscoring the negative momentum that may be driving some investors to trim positions in covered call structures like BTCC. Such products can cushion downside via option premiums, but they also cap upside participation—an unattractive trade-off when sentiment shifts and traders prefer either pure downside protection or clean directional exposure.
The latest flow data suggests that a segment of investors is reassessing income-oriented crypto strategies amid heightened volatility and deteriorating technicals. If Bitcoin’s weakness persists, further redemptions from derivative-based ETFs could follow, especially from funds that target sophisticated options overlays whose appeal is highly sensitive to market mood.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.