Grayscale Files for Zcash High Income ETF Using Options Strategy
Grayscale has filed for a new Zcash-related fund, the ZCSH High Income ETF, which uses options on the existing ZCSH ETF to generate income through covered calls with planned distributions every two weeks.
By T. Noe · ZecZcash News Team
1 min read
Grayscale has filed for a new Zcash-related fund called the ZCSH High Income ETF. Unlike the existing ZCSH ETF, this new fund does not directly hold ZEC. Instead, it uses options on ZCSH to generate income through a covered call strategy, with distributions planned every two weeks.
The covered call approach generates premium income but comes with a significant trade-off: potential upside is capped while downside risk remains. This structural dynamic is central to how the fund would operate.
Key Facts
- Distribution Frequency
- Every two weeks
- Strategy
- Covered calls on ZCSH