Grayscale: Zcash covered call strategy implies an annualized yield of approximately 70%, but carries higher risk than Bitcoin.

BlockBeats News, September 9 - Grayscale Head of Research Zach Pandl stated that as Bitcoin matures, its price volatility has notably declined. Bitcoin's early realized annualized volatility was around 125%, but over the past year it has averaged only about 40%, approaching the level of U.S. "Magnificent Seven" tech stocks.

In comparison, Zcash's market cap is only about 1% of Bitcoin's, and ZEC's price volatility has averaged around 140% over the past year. Based on current volatility estimates, assuming a Zcash covered call option strategy, the premium income corresponds to an implied annualized yield of approximately 70%, while a similar strategy for Bitcoin yields around 30%.

Pandl cautioned that higher potential returns come with higher risks; if the spot price decline exceeds the received premium, the covered call strategy can still result in principal losses. Investors seeking a clearly defined risk-return structure may consider going long on call or put options.