Grayscale Bitcoin Covered Call ETF (BTCC) saw a sharp reversal in sentiment on December 16, 2025, with investors pulling $865,060 from the fund. The outflow, equivalent to about 3.5% of its $24.7 million in assets under management (AUM), marks a notable vote of caution toward yield-oriented Bitcoin exposure after months of heightened volatility.
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BTCC’s latest redemption wave comes as its underlying asset, Bitcoin, remains under pressure. The related asset, BTC-USD, is currently trading at $88,918.88, down roughly 23.2% over the past three months. The short-term technical picture is equally downbeat, with a 1-day signal flashing Sell, underscoring ongoing bearish momentum.
The covered call strategy at the heart of BTCC is designed to monetize Bitcoin’s volatility by selling options, exchanging some upside participation for income. Yet when the underlying asset is sliding and technicals are deteriorating, investors often reassess whether the incremental yield compensates for capital risk. The latest outflows suggest a segment of the market is stepping back from complex crypto-linked strategies and preferring either direct Bitcoin exposure or sidelined cash until price action stabilizes.
Despite the withdrawal representing only a mid-single-digit slice of BTCC’s AUM, the move is emblematic of broader fatigue in crypto markets, where drawdowns have tested the conviction of yield-chasing investors. Should Bitcoin’s weakness persist and technical signals remain negative, covered call vehicles like BTCC may face continued scrutiny over their ability to cushion downside while still delivering attractive returns.
For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.