At a time when client interest in digital assets is undeniable—and increasingly unavoidable—Grayscale is expanding its funds lineup to give advisors a way to meet demand head-on, offering liquid, regulated, and differentiated access points to the crypto ecosystem.
In an interview with The Wealth Advisor’s Scott Martin, David LaValle, Global Head of ETFs, discussed how Grayscale is building a diversified suite of exchange-traded funds (ETFs) and products (ETPs) designed to meet wealth managers’ evolving needs, ranging from straightforward spot exposure to volatility-harnessing options strategies and equity-based proxies.
From Allocation Question to Advisor Readiness
Advisors are no longer debating whether crypto belongs in a portfolio—they’re asking where it fits. That shift marks a turning point in the advisor-client conversation, moving beyond curiosity toward meaningful portfolio construction.
Grayscale, which has engaged in thousands of advisor conversations since spot Bitcoin ETFs hit the market, is seeing that transformation firsthand. “We’re 15–16 months into having Bitcoin spot ETPs in market,” LaValle says. “There’s been massive flows. Everyone has talked about that. We’ve had 6,000–7,000 conversations or touchpoints with clients, so we’re now getting a good sense of what the feedback has been and what clients are clamoring for.”
More than $125 billion has flowed into Bitcoin ETPs, he notes, validating demand, raising expectations, and signaling a new phase in market maturity. “The conversations are becoming quite a bit more nuanced, and that’s a great indicator that crypto is here to stay.”
At the same time, crypto’s growing presence brings added pressure for advisors to be prepared. LaValle highlights a recurring trend in conversations with financial professionals: advisors allocating just 1% to crypto often end up spending a disproportionate amount of time addressing that exposure with clients. “They’re willing to make a 1% allocation to Bitcoin, but then 80% of their conversation is around that 1% position,” he says.
The conversation imbalance reflects crypto’s unique position in the adoption curve—small allocations generating outsize client attention. As the asset class matures, advisors increasingly need partners who can provide education, compliance guidance, and operational support beyond just product access.
“You need to make sure that you’re partnering with a specialist in that particular asset class,” says LaValle. “And it’s even more important when you’re in a nascent asset class like crypto.” That’s where Grayscale aims to stand apart—not just through its product lineup, but through the right organizational framework behind it. “We’re an expert in crypto. We’re an expert in ETFs,” he adds. “All the engagement we’ve been having with clients, wealth managers, and advisors is showing that that institutional-grade infrastructure we have is resonating well.”
Beyond Spot: Answering the Call for Alternatives
Grayscale’s low-cost funds—the Bitcoin Mini Trust ETF (BTC) and Ethereum Mini Trust ETF (ETH)—provide direct exposure to Bitcoin and Ethereum, respectively, but many clients require different structures in accordance with regulatory limits, platform access, or portfolio preferences. Grayscale has responded with equity-based strategies that capture crypto’s economics through traditional wrappers.
The Grayscale Bitcoin Miners ETF (ticker: MNRS) offers targeted exposure to the global Bitcoin mining industry via a passive, rules-based strategy. Seeking to track the Indxx Bitcoin Miners Index, MNRS invests in a diversified basket of publicly traded companies that generate substantial revenue from mining operations—the backbone of the Bitcoin network. These firms often benefit from rising Bitcoin prices, which can boost margins and profitability, though correlations vary with market dynamics.
“Some people want to hold Bitcoin, some people want a Bitcoin ETP, and some people want Bitcoin miners,” LaValle says. “It’s early, but that’s answering the call for clients that want something that’s a global equity replication of some of what’s happening in the Bitcoin market.”
The Grayscale Bitcoin Adopters ETF (ticker: BCOR) takes a different approach, focusing on companies holding at least 100 Bitcoins on their balance sheets. By excluding miners and weighting by company size, BCOR emphasizes Bitcoin’s strategic use in corporate treasury management. Spanning seven sectors and 15 industries, the strategy reflects a growing institutional trend while offering broad equity diversification.
“That’s really resonating with clients who are not yet ready or not permitted to have direct Bitcoin exposure, or also just want to have some sort of equity replication strategy for Bitcoin in their portfolios,” says LaValle.
Together, MNRS and BCOR aim to help advisors integrate crypto-aligned strategies into portfolios using familiar tools—bridging the gap between growing client interest and practical implementation.
Income Strategies That Harness Volatility
For advisors looking to turn Bitcoin’s volatility into yield, Grayscale offers two covered-call ETFs with distinct approaches: BTCC and BPI.
BTCC, the Grayscale Bitcoin Covered Call ETF, aims to maximize income by writing at-the-money call options on Bitcoin ETPs such as BTC and the flagship Grayscale Bitcoin Trust ETF (GBTC). “The covered-call strategy is really exciting in that it is trying to harness and capture the greatest distributions, selling those options which have high levels of premium,” LaValle explains. “In the case of BTCC, if we were to annualize the first two distributions, you’re looking at annualized distributions in excess of 40%.”
The strategy emphasizes consistent monthly income, trading full upside participation in exchange for premium capture.
BPI, the Grayscale Bitcoin Premium Income ETF, aims to strike a different balance—writing calls 15–20% out of the money. This allows for both income generation and participation in Bitcoin’s potential price appreciation. “That gives investors an opportunity to both have the upside performance of Bitcoin but also still capture some distributions,” LaValle says.
Both funds offer monthly distributions and are designed to help advisors incorporate crypto exposure into income-focused portfolios with less complexity. “It depends on the flavor that you want and what your investment goals are,” LaValle says, “but these have been extremely well received in market, as well.”
Institutional Demand and Untapped Potential
Grayscale’s research shows that a crypto allocation of up to 5% could maximize expected risk-adjusted returns in a diversified portfolio. So, a little goes a long way. Despite compelling fund flows into Bitcoin ETP assets, however, institutional access remains underdeveloped.
Independent RIAs have led adoption, LaValle notes, but another opportunity lies in large full-service firms still navigating entry into the asset class. “Once these big wirehouses get these products onboarded and start incorporating them into house models, we could see a massive explosion in Bitcoin ETP adoption,” he says. With roughly $30 trillion in wealth management assets, even a modest 1% allocation would equate to $300 billion in flows—nearly triple current levels.
While some advisors remain cautious, the broader story is familiar. ETFs themselves were once considered fringe instruments before becoming standard practice. “This is another disruptive technology,” observes LaValle. “It makes sense that where we are in the adoption curve is now having a different type of reaction from clients.”
A Generational Shift, A Portfolio Planning Imperative
As trillions of dollars in generational wealth prepare to change hands, crypto awareness has become critical for both estate planning and client retention.
“There’s investing and investment planning. And then there is actual wealth planning,” LaValle notes. “If you have crypto or a client has crypto, and you don’t know where it is, and people don’t understand exactly how to access it should something happen, that’s a real concern.”
Clients often underdisclose and advisors misunderstand crypto ownership. Without a structured strategy, firms risk falling behind on both planning conversations and portfolio construction, and LaValle urges advisors to take the lead. “You have asymmetric risk in your franchise right now if you don’t have a crypto strategy,” he says. “Have that conversation. Your clients are going to tell you exactly what they want. And it’s time for us to deliver solutions.”
Meeting Clients Where They Are
Grayscale’s product development reflects a consistent theme: responding to where clients are in their crypto journey and delivering regulated solutions that fit the wealth management channel.
“If you were to sum up Grayscale’s attitude towards crypto investing or our whole business plan, it’s: Hey, we’re going to meet clients wherever they are in their crypto journey, and then we’re going to deliver them regulated financial products that fit their franchise,” LaValle says.
For investors, that means a suite of options—from spot products like BTC and ETH to equity-based strategies like MNRS and BCOR and to volatility-focused income funds like BTCC and BPI.
As adoption accelerates and conversations deepen, the role of crypto in portfolio construction is evolving rapidly. For advisors who want to stay ahead of client expectations—and competition—the time to engage is now.
“That’s why we’re bringing the products to market that we’re bringing to market,” LaValle says. “We’re responding to client demand, and we’re going to continue to create solutions.”
_____________________
