Investors Pull Back From Grayscale’s Bitcoin Covered-Call ETF as Upside Caps Lose Their Appeal

Bitcoin Options ETF Sees Fresh Outflows as Traders Shun Covered-Call Caps

The Grayscale Bitcoin Covered Call ETF, BTCC, recorded net outflows of $651,060 on December 22, 2025, a move that trimmed roughly 2.62% from its $24.85 million in assets under management. The latest redemption underscores a cautious tone among yield-seeking investors who may be questioning the appeal of covered-call strategies in a fast-moving crypto market.

Covered-call products like BTCC are designed to generate income by writing call options on Bitcoin exposure, effectively trading away some upside potential for option premiums. The recent outflows suggest part of the investor base may be rotating back into pure spot Bitcoin exposure, or stepping to the sidelines amid heightened volatility and uncertainty over the durability of the latest crypto rally.

The related asset, BTC-USD, is currently trading around $86,757.19. Over the past three months, Bitcoin has moved sharply but the precise percentage change was not disclosed, highlighting just how quickly conditions have shifted in the digital-asset market. On a short-term basis, the 1-day technical picture for BTC-USD is flashing a mixed signal, reflecting a tug-of-war between momentum traders chasing upside and profit-takers locking in recent gains.

For BTCC, the latest outflow, while meaningful as a share of AUM, does not yet signal a wholesale exodus. But if Bitcoin continues to trade in wide ranges, some investors may favor unhedged exposure over option-writing strategies that limit potential upside during strong rallies. The coming weeks will test whether income-focused crypto products can retain assets in an environment where directional bets on Bitcoin itself remain the dominant theme.

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