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Grayscale Accelerates ETF Expansion Amid Growing Competition in the Crypto Market

Grayscale, a prominent asset management firm specializing in crypto investment products, is ramping up its efforts to expand its ETF offerings. The company aims to strengthen its position in the competitive cryptocurrency ETF market by increasing its product launches and regulatory filings. CEO Peter Mintzberg confirmed that Grayscale plans to scale its monthly launches from one product in 2024 to five per month in 2025.

Adapting to a Changing Landscape

The expansion comes as Grayscale faces challenges in maintaining its market dominance. The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) in January 2024—following Grayscale’s legal victory—has led to the emergence of low-cost alternatives from major players like BlackRock and Fidelity. This shift has impacted Grayscale’s flagship product, GBTC (Grayscale Bitcoin Trust), which still manages $16 billion in assets but has seen substantial outflows due to its 1.5% fee.

To address these challenges, Grayscale launched a “mini” GBTC ETF with a significantly lower fee of 0.15%. This new product has already attracted $3.5 billion in assets, indicating strong investor interest. However, shrinking margins have prompted the firm to explore new strategies to retain and grow its market share.

Innovative Bitcoin Covered Call ETFs

As part of its ETF expansion, Grayscale introduced two new Bitcoin covered call ETFs on April 2: BTCC (Grayscale Bitcoin Covered Call ETF) and BPI (Grayscale Bitcoin Premium Income ETF). These funds employ covered call strategies to generate monthly income from Bitcoin’s price volatility.

  • BTCC: Focuses on income generation by using options tied to Grayscale’s own spot Bitcoin ETFs.
  • BPI: Aims to provide both income and potential upside through out-of-the-money call options.

These products are designed to appeal to investors seeking alternative income streams while leveraging Bitcoin’s price movements.

Exploring Ethereum Staking and Emerging Crypto Assets

Beyond Bitcoin ETFs, Grayscale is exploring opportunities in Ethereum staking. In February 2024, the firm filed an application with the SEC to incorporate staking into its Ethereum Trust ETF and Ethereum Mini Trust ETF. The decision on this application is expected by June 1, potentially unlocking new revenue streams for the company.

Grayscale is also considering ETFs that provide broad exposure to emerging crypto assets. The firm’s Q2 2025 “Top 20” list offers insights into high-potential projects identified through internal research. This quarter’s focus is on tokens with real-world utility across three narratives:

  • RWA Tokenization: Real-world asset tokenization.
  • DePIN: Decentralized physical infrastructure networks.
  • Intellectual Property: Blockchain-based IP solutions.

Notable projects on this list include Maple (SYRUP), Geodnet (GEOD), and Story Protocol (IP), which highlight Grayscale’s interest in diversifying its investment portfolio beyond traditional cryptocurrencies.

Positioning for Long-Term Growth

Under Peter Mintzberg’s leadership, Grayscale is adapting to the evolving crypto landscape by focusing on innovation and differentiation. By expanding its ETF lineup and exploring new markets like Ethereum staking and emerging crypto assets, the firm aims to remain competitive and attract a broader range of investors.

Grayscale’s strategic approach reflects its commitment to providing diverse and accessible investment options in the rapidly growing cryptocurrency sector.

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