Grayscale Bitcoin Premium Income ETF

Frequently Asked Questions About BPI

What does BPI invest in?

The fund is an actively managed exchange-traded fund (“ETF”) that seeks indirect exposure to the returns of bitcoin by investing in bitcoin ETPs, including, but not limited to the Grayscale Bitcoin Trust (Ticker: GBTC) and the Grayscale Bitcoin Mini Trust ETF (Ticker: BTC). The manager seeks to deliver this through fully synthetic exposure via the purchase and sale of a combination of call and put option contracts that utilize the Bitcoin ETPs as the reference asset. The fund is non-diversified.

What is the expense ratio of BPI?

Grayscale Bitcoin Premium Income ETF (BPI) charges an expense ratio of 0.66%. This is the annual fee deducted from fund assets to cover management and operations.

What is BPI's distribution yield?

BPI's trailing-twelve-month yield is 24.33%, calculated from the sum of distributions over the past year divided by the current price.

How does BPI's covered-call strategy work?

BPI sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

What is the duration of BPI?

Effective duration measures BPI's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. BPI's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of BPI?

BPI's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.