Grayscale has launched the Ethereum Covered Call ETF (ETCO), designed to generate income through an options strategy while providing exposure to ether (ETH). The ETF began trading recently and is part of Grayscale’s growing suite of income-oriented investment products. Ether has significantly outperformed Bitcoin this year, increasing by 34% compared to Bitcoin's 20%, due to rising institutional interest in Ethereum's blockchain. The ETCO fund employs a strategy of systematically selling call options on Ethereum-linked exchange-traded products, generating premiums that are distributed to shareholders bi-weekly. This approach aims to attract investors looking for steady income while mitigating volatility associated with ether's price. Grayscale positions the ETCO as a complement to existing Ethereum investments, allowing for potential yield in addition to capital appreciation.

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