Bitcoin Option Income Fund Sees Cash Drain as Traders Flee Volatility
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The Grayscale Bitcoin Covered Call ETF, BTCC, recorded outflows of $1,747,576 on January 05, 2026, a sizable redemption that shaved roughly 7.66% off its $22.82 million in assets under management. The move underscores how quickly sentiment can swing against yield-focused crypto derivatives products when underlying price momentum falters.
BTCC is designed to generate income by writing covered calls on Bitcoin exposure, a strategy that typically attracts investors during periods of sideways or mildly bullish trading. However, the latest outflows suggest that investors may now be questioning the trade-off between option income and capital downside as Bitcoin’s trend has turned sharply negative over the past quarter.
The related asset, BTC-USD, is currently trading around $90,615.32, down approximately 18.38% over the past three months. Technically, near-term momentum remains weak, with the 1-day signal flashing Sell, reinforcing the risk-off mood that likely contributed to this week’s redemptions from BTCC.
While a covered call ETF can cushion some drawdowns through option premiums, it also caps upside if Bitcoin stages a sharp rebound—an additional factor that may be prompting more tactical investors to step aside until price action stabilizes. For a more detailed analysis and real-time sentiment trends, check the live cryptocurrency prices here.