Grayscale Says Bitcoin Covered Calls Could Deliver 22% Annual Yield in Sideways Markets

Grayscale believes Bitcoin investors can generate annualized yields of around 22% by using a covered call strategy during prolonged sideways market conditions.

The approach involves holding spot Bitcoin while selling call options to collect premium income, allowing investors to earn additional returns even when BTC prices remain range-bound. According to Grayscale, the strategy can outperform simply holding Bitcoin in low-volatility markets and also provides modest downside protection through option premiums.

However, the trade-off is that investors give up part of Bitcoin’s upside if prices rally sharply above the option strike price. As institutional interest in crypto income strategies grows, covered call products are emerging as an alternative for investors seeking consistent cash flow without selling their Bitcoin holdings.

Clever Robot News Desk 20^th July 2026