Grayscale Bitcoin Premium Income ETF

Frequently Asked Questions About BPI

What does BPI invest in?

The Grayscale Bitcoin Premium Income ETF (the “Fund”) seeks to provide current income while maintaining prospects for capital appreciation through the use of options on Bitcoin ETPs products whose investment objectives are to, before fees and expenses, track the price performance of Bitcoin. The Bitcoin ETPs include, but are not limited to, Grayscale Bitcoin Trust ETF (Ticker: GBTC) and Grayscale Bitcoin Mini Trust ETF (Ticker: BTC) (the “Bitcoin ETPs”).

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 30.54%, 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.