Grayscale introduces an Ethereum-based exchange-traded fund (ETF) called ETCO

Grayscale Launches Ethereum-Focused ETF for Income-Seeking Investors

Grayscale Investments, a leading investment management company, has entered the Ethereum market with the launch of the Grayscale Ethereum Covered Call ETF (ETCO). The new fund commenced trading on NYSE Arca on September 4, 2025, offering an options-based strategy to generate income while providing Ethereum exposure.

According to Krista Lynch, Senior Vice President of ETF Capital Markets at Grayscale, the fund is part of their commitment to providing innovative, outcome-oriented solutions. The ETCO fund prioritizes income by selling call options near current spot prices on Ethereum ETPs to capitalize on market volatility and time decay.

As of press time, Ethereum is trading at $4,410, having gained about 1% in the last 24 hours. The ETCO fund commenced trading with approximately $1.4 million in assets under management. The success of the ETCO fund will be closely watched as a barometer for demand for complex crypto yield products in the regulated ETF wrapper.

The income generated from selling call options may help mitigate the impact of minor price declines in the underlying assets. It's worth noting that the ETCO fund targets investors seeking income in addition to spot Ethereum exposure.

Meanwhile, in another development, John Deaton, a well-known figure in the crypto community, claimed that the XRP army helped win the Ripple case. However, no specific details about the case or the role of the XRP army were provided.

The launch of the ETCO fund marks another significant step for Grayscale in the crypto space, following the successful launch of several other crypto-focused ETFs. As the crypto market continues to evolve, it will be interesting to see how the ETCO fund performs and whether it paves the way for similar products in the future.