Grayscale: Bitcoin Covered Calls Could Yield 22% in Flat Markets

Asset manager Grayscale has shared some good news for investors looking to make money when the crypto market goes quiet. The firm revealed that a Bitcoin covered call strategy could generate an annualized return of roughly 22% when the digital asset trades sideways.

This strategy works by holding Bitcoin and selling call options against it. Grayscale framed this option based income as a smart way to generate extra yield on your crypto holdings during range bound market conditions. However, the firm made sure to point out that this is not a guaranteed payout, but rather a way to extract value when prices are flat.

While everyone loves a massive crypto bull run, sideways markets can often leave traders feeling bored and stuck. If more institutional players adopt these covered call strategies, we might see a lot more yield focused products popping up in the crypto space, giving everyday investors more tools to grow their portfolios even when prices are moving nowhere.