BlackRock Files for Covered-Call Bitcoin Premium Income ETF
BlackRock has filed with the SEC to launch the iShares Bitcoin Premium Income ETF, a new crypto yield product using a covered-call strategy on Bitcoin futures. The fund will sell Bitcoin call options to distribute option premiums, offering regular distributions to yield-seeking institutional and retail investors while capping potential upside in Bitcoin price. This follows the success of BlackRock’s iShares Bitcoin Trust (IBIT), which holds over $87 billion in assets and controls roughly 60% of the U.S. spot Bitcoin ETF market. IBIT generated $218 million in annual revenue from Bitcoin products and $42 million from Ethereum funds, and BlackRock now holds over 706,000 BTC (valued at $71 billion) and 3.8 million ETH. Analysts including Bloomberg’s Eric Balchunas highlight BlackRock’s deepening focus on BTC and ETH, while Onchain Foundation’s Leon Waidman points to the firm’s crypto business as a significant profit center. The new Bitcoin Premium Income ETF could bridge Wall Street capital into crypto markets, strengthening demand for Bitcoin and setting the stage for future covered-call strategies and altcoin ETFs. SEC’s recent openness to new crypto products and a generic listing standard may expedite approval.
Bullish
BlackRock’s proposal to launch a Bitcoin Premium Income ETF is a bullish development for Bitcoin. By offering a covered-call strategy to generate yields, the new ETF could attract fresh institutional and retail capital seeking crypto yield, increasing Bitcoin demand. In the short term, the anticipation of inflows may support Bitcoin prices, while in the long term, the product enhances market maturity and institutional participation. Although the covered-call approach caps some upside, the additional liquidity and broadening of the ETF market are likely to reinforce positive sentiment and price stability.