Investors Hit the Sell Button on Grayscale’s BTCC as Bitcoin Slump Deepens

Bitcoin Options Play Sees Investors Pull Back as Volatility Bites

The Grayscale Bitcoin Covered Call ETF, BTCC, logged notable outflows on December 16, 2025, with investors withdrawing $865,060 from the fund. The move trimmed assets under management to $25.58 million, meaning roughly 3.38% of BTCC’s capital base exited in a single session—a meaningful shift for a niche options-driven Bitcoin strategy.

Such a sizable redemption suggests investors may be reassessing income-focused Bitcoin products amid renewed uncertainty in the underlying crypto market. Covered-call ETFs typically appeal to holders seeking yield and reduced volatility, but they can underperform in sharp directional moves, especially when the underlying asset is sliding and option premiums fail to offset capital losses.

The related asset, BTC-USD, is currently trading at $87,246, down about 25.66% over the past three months. That drawdown underscores how quickly sentiment has reversed after Bitcoin’s earlier highs, pressuring strategies that rely on stable or gradually rising prices to harvest option income. Short-term technicals echo the caution: the 1-day signal screens as a Sell, reflecting weak momentum and traders’ reluctance to add fresh long exposure.

For BTCC, the combination of a bearish technical backdrop in Bitcoin and steady three-month losses may be prompting investors to rotate either into more defensive assets or into higher-beta pure-price Bitcoin vehicles, rather than income-centric derivatives products. If outflows persist, the fund could face further pressure on liquidity and spreads, even as it continues to market itself as a yield solution in a volatile crypto landscape.

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