Grayscale Contemplates Expansion of ETF Portfolio - Identified Candidates for Inclusion
Let's Discuss Grayscale's Aggressive ETF Expansion Strategy
Grayscale, the popular crypto investment firm, is revving up its ETF lineup to tackle growing competition in the market. In an interview with Fortune, their CEO, Peter Mintzberg, revealed that they've boosted their monthly launches or regulatory filings from one product in 2024 to five per month in 2025.
Grayscale has been feeling the heat after losing its fee advantage with the US Securities and Exchange Commission's approval of spot Bitcoin ETFs last year. This move opened the floodgates for cheaper offerings from giants like BlackRock and Fidelity. Although Grayscale's core product GBTC still manages $16 billion, its 1.5% fee has led to substantial outflows as investors flock towards cheaper alternatives.
To stay afloat, Grayscale launched a "mini" GBTC ETF with a lower 0.15% fee, which has accrued $3.5 billion in assets so far. However, shrinking margins have pushed the firm to rethink its business model. Under Mintzberg's leadership since August 2024, Grayscale is now aiming to compete on more than just fees, offering differentiated investment products to win back market share.
Grayscale recently launched two new Bitcoin covered call ETFs, BTCC and BPI, on April 2. These funds employ covered call strategies to generate monthly income from Bitcoin's price volatility. BTCC prioritizes income generation through options on Grayscale's own spot Bitcoin ETFs, while BPI aims to provide both income and potential upside by writing out-of-the-money call options.
Looking ahead, Mintzberg sees significant revenue potential in Ethereum staking. Grayscale applied with the SEC to allow staking in its Ethereum Trust ETF and Ethereum Mini Trust ETF last February, but a decision is still pending until June 1. The firm is also exploring ETFs that offer broad exposure to emerging crypto assets, with focus on tokens with real-world utility across three main narratives: RWA tokenization, DePIN, and intellectual property.
New ETFs On the Horizon: Grayscale's Ambitious Plans
- Ethereum Staking ETFsGrayscale aims to incorporate staking capabilities into its Ethereum Trust ETF and Ethereum Mini Trust ETF by participating in Ethereum’s proof-of-stake validation system. This would allow traditional investors to earn staking rewards while Grayscale handles custody through Coinbase, ensuring compliance. The SEC has delayed its decision on the proposal to June 1, making it a critical regulatory hurdle.
- Broad Exposure ETFs for Emerging Crypto AssetsGrayscale’s expansion strategy includes ETFs targeting tokens with real-world utility across three narratives: RWA tokenization, DePIN, and intellectual property. These selections derive from Grayscale’s Q2 2025 “Top 20” list, which emphasizes projects demonstrating measurable adoption and infrastructure growth.
These plans suggest that Grayscale is gunning for innovative ETFs that cater to the growing demand for yield-generating crypto products. The recent launch of Bitcoin covered-call ETFs further underscores this strategy.
- Bitcoin Covered Call ETFs Expansion: Grayscale's Bitcoin covered call ETFs, BTCC and BPI, have been met with success, generating interest among investors seeking monthly income from Bitcoin's price volatility. In light of this, anticipated future expansion of these ETFs is likely.
- Crypto DEX ETFs: In line with the expanding crypto ecosystem, Grayscale is contemplating the launch of Exchange Traded Funds (ETFs) focused on decentralized exchanges (DEXs), providing investors with exposure to the rapidly growing DeFi sector.
- TRON-Based ETFs: Grayscale has expressed interest in exploring TRON-based ETFs, taking advantage of the scaling-oriented blockchain's potential for high-frequency transactions and low costs, which could attract a broader range of investors.
- Syrup Finance Token ETF: As DeFi continues to gain momentum, Grayscale's upcoming ETF may focus on Syrup Finance, a decentralized platform that facilitates the staking and expansion of various DeFi tokens, allowing investors to harness the compounding yields of multiple decentralized projects simultaneously.
- ETFs for Crypto-Based Infrastructure and Technologies: With the increasing focus on real-world use-cases for blockchain technology, Grayscale's ETFs could extend beyond tokens to invest in companies providing blockchain-based infrastructure, further expanding their crypto investment offerings.
- ETFs for Crypto-Backed Securities and ETNs: Grayscale's ambitious plans also include Exchange Traded Notes (ETNs) and securities backed by cryptocurrencies, providing additional avenues for investors to gain exposure to the growing crypto market while diversifying their investment options by 2025.
