- BlackRock is planning a new income-focused Bitcoin ETF, the Bitcoin Premium Income ETF, and has begun the registration process with a Delaware trust filing.
- The ETF’s strategy is to generate returns by selling covered call options on Bitcoin futures, appealing to investors seeking yield over full exposure to Bitcoin’s price upside.
- This new product would be one of the first major attempts to create a mainstream Bitcoin yield ETF in the U.S., building on the success of BlackRock’s existing spot Bitcoin ETF, IBIT, which holds over US$60.7 billion in assets.
BlackRock is expanding its Bitcoin lineup with a new income-focused exchange-traded fund, beginning with the registration of a Delaware trust company tied to the vehicle.
The Bitcoin Premium Income ETF would generate returns by selling covered call options on Bitcoin futures, according to ETF analyst Eric Balchunas.
The structure offers steady payouts but limits gains compared to BlackRock’s flagship iShares Bitcoin ETF, which tracks Bitcoin directly. The product would mostly cater to investors prioritising yield over exposure to Bitcoin’s full upside.
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Yield Products Remain Scarce in U.S. Crypto Market
Firms like Strategy have experimented with yield-backed offerings, but BlackRock’s entry would mark one of the first large-scale attempts to create a mainstream Bitcoin yield ETF in the US.
A Delaware trust filing is often a safe call that the issuer is close to submitting formal paperwork to the Securities and Exchange Commission (SEC), such as an S-1 or 19b-4. The filing comes just a few weeks after Crypto News Australia covered BlackRock’s intentions to tokenise ETFs on blockchain networks in a bid to attract even more investors.
It also comes at a time when regulators are pushing politicians to finalise and approve legislation that would make the regulatory climate more crypto-friendly, or at least clearer for crypto companies. For instance, SEC chair Paul Atkins is urging Congress to move faster on the Crypto Market Structure bill, and pass it before year-end.
IBIT, BlackRock’s existing spot Bitcoin ETF, has already accumulated more than US$60.7 billion (AU$93.2 billion) in assets since its launch in early 2024. Its nearest rival, Fidelity’s Wise Origin Bitcoin Fund, holds US$12.3 billion (AU$18.9 billion).
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