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What to know:

A message from Grayscale

Ethereum (and its token Ether) is the largest smart contract platform crypto asset in the world, with unique and differentiated volatility characteristics, which makes it a very attractive asset for systematic call writing to target income generation.  

This is why Grayscale is excited to announce its latest product — Grayscale Ethereum Covered Call ETF (ETCO). ETCO is focused on maximizing income, and aims to be the highest income product in the category. 

Why ETCO:

• High Income Potential: ETCO seeks to maximize income generation through covered call writing with Ethereum as the underlying reference asset.
• Biweekly Distributions*: ETCO is designed to distribute dividends twice per month, prioritizing a consistent cadence of distributions to investors. ETCO targets payment dates on the 15th and 30th of every month.
• Systematic Options Management: ETCO writes, rolls, and rebalances call options on Ethereum ETPs, saving investors the time, operational hurdles, and expenses of doing so on their own.

Important Disclosures

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Funds, please call (866)-775-0313 or visit our website at etfs.grayscale.com. Read the prospectuses or summary prospectuses carefully before investing.

Grayscale Ethereum Covered Call ETF, Grayscale Bitcoin Covered Call ETF, and Grayscale Premium Income ETF (collectively, the "Funds") will not invest in digital assets directly. The Funds also will not invest in initial coin offerings. The Funds will, however, have indirect exposure to digital assets by virtue of its investments in derivatives on exchange-traded vehicles that hold digital assets as investments. Because the Funds will not invest directly in any digital assets, they may not track price movements of any digital assets. Investors seeking direct exposure to the price of Ether should consider an investment other than the Fund. 

Ether Investment Risk. Ether is relatively new innovation and the market for ether is subject to rapid price swings, changes and uncertainty. The further development of the Ethereum Network and the acceptance and use of either are subject to a variety of factors that are difficult to evaluate. 

Digital Assets Risk. Digital assets, such as ether, are assets designed to act as a medium of exchange, though some arguably have not achieved that purpose. Digital assets are an emerging asset class. 

Blockchain Technology Risk. Blockchain technology is new and many of its uses may be untested. 

Derivative Instruments. The fund will invest in options, a type of derivative instrument. Derivatives can be more sensitive to changes in interests rates or to sudden fluctuations in market prices than conventional securities, which can result in greater losses for the Fund. 

Liquidity Risk. Liquidity risk is the risk that a particular investment cannot be sold at an advantageous time or price. 

Non-Diversification Risk. The Fund is considered to be non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. 

New Fund Risk. The Fund is recently organized investment company with no operating history. 

The Funds are distributed by Foreside Fund Services, LLC and Grayscale Advisors, LLC is the adviser.

 What to Watch

Crypto

• Curve DAO is voting to update donation-enabled Twocrypto contracts, refining donation vesting so unlocked portions persist after burns. Voting ends Sept. 16.

Macro

• Sept. 15: Starknet (STRK) to unlock 5.98% of its circulating supply worth $17.09 million.

• Sept. 15: Sei (SEI) to unlock 1.18% of its circulating supply worth $18.06 million.

Earnings (Estimates based on FactSet data)

• Sept. 15: OpenLedger (OPENLEDGER) to be listed on Crypto.com