Asset manager Grayscale submitted an updated prospectus for its Bitcoin Covered Call ETF on Monday. The new fund is set to increase exposure to Bitcoin and the firm’s Bitcoin Trust while writing and buying options contracts on Bitcoin ETPs.

Grayscale filed an updated prospectus for its Bitcoin Covered Call ETF

According to James Seyffart, a research analyst at Bloomberg Intelligence, Grayscale has officially filed an updated prospectus for its Bitcoin Covered Call ETF. The new ETF will provide investors with the necessary exposure to Bitcoin and GBTC while offering more revenue-generation options.

In its prospectus, Grayscale wrote:

The fund seeks to achieve its investment objective primarily through actively-managed exposure to Grayscale Bitcoin Trust (BTC) (“GBTC”) and the purchase and sale of a combination of call and put option contracts that utilize GBTC as the reference asset.

~Grayscale

However, the Bitcoin Covered Call ETF still does not have a trading code. 

The fund was initially proposed on January 11, when GBTC started trading. At the time, Michael Sonnenshein, CEO of Grayscale, had emphasized the company’s commitment to grow GBTC and its ecosystem, hinting at plans to launch the Bitcoin Covered Call ETF. He even pointed out how helpful it could add income for Bitcoin investors. 

The SEC approved a rule change allowing for the conversion of spot cryptos into listed ETFs

Grayscale’s prospectus submission comes just one month after the SEC accepted a change to the ETF listing rules.

The Securities and Exchanges Commission approved a rule change on October 18, allowing the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to offer options trading for multiple spot Bitcoin exchange-traded funds.

The rule change came as a relief to several ETF issuers, including Grayscale, who can now have their funds listed.

Moreover, the Options Clearing Corporation (OCC) announced on November 18 that it was gearing up to facilitate the “clearance, settlement, and risk management” of spot Bitcoin ETFs following a CFTC staff advisory. 

ETF analyst Eric Balchunas interpreted this as a signal that US exchanges listing these crypto investment vehicles are inevitable, saying the listing was only  “a matter of when, not if”.

Grayscale is also collaborating with NYSE Arca to earn the approval to list a range of ETFs that are not necessarily Bitcoin-related.

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