New BlackRock ETF Proposal Targets Bitcoin Yield for Investors

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A new filing reveals BlackRock’s plans to launch a Bitcoin ETF focused on generating income. The proposed iShares Bitcoin Premium Income ETF, submitted to the SEC, seeks to combine direct Bitcoin exposure with a yield-producing strategy.

The fund would track Bitcoin’s price by holding the asset directly, mirroring the approach of BlackRock’s IBIT ETF. Its distinguishing feature is the active use of a covered-call options strategy to create a potential income stream for shareholders.

To create yield, the fund’s manager will sell call options. While the primary focus will be options on the IBIT ETF shares, the filing notes the strategy may also involve other Bitcoin ETPs, capturing the premiums from these sales.

This places the product within an expanding niche of crypto funds utilizing covered-call writing. These vehicles sacrifice unlimited upside potential in exchange for earning consistent premium income on a monthly basis.

The introduction of such a strategy offers a way to derive income from a Bitcoin holding. It provides an alternative yield mechanism akin to staking rewards available for other digital assets, but rooted in traditional options markets.