Quick Breakdown
- BlackRock filed to register a Delaware trust for its proposed Bitcoin Premium Income ETF, signaling a new yield-focused product.
- The ETF would use a covered call options strategy on Bitcoin futures, offering income but reducing upside exposure.
- Analysts say BlackRock is sticking to Bitcoin and Ether ETFs, leaving room for competitors in altcoin-based funds.
BlackRock eyes yield-generating Bitcoin strategy
Asset management heavyweight BlackRock has moved closer to launching a new crypto investment vehicle, filing to register a Delaware trust company for its proposed Bitcoin Premium Income ETF. The move signals the firm’s intent to broaden its suite of Bitcoin products beyond its blockbuster iShares Bitcoin ETF (IBIT).
According to Bloomberg ETF analyst Eric Balchunas, the new product would adopt a covered call options strategy on Bitcoin futures, aiming to generate regular income from option premiums. While this approach offers yield, it would limit upside potential compared to direct exposure through IBIT, which mirrors Bitcoin’s spot price.
“This is a covered call Bitcoin strategy in order to give BTC some yield. This will be a ’33 Act spot product, sequel to the $87b $IBIT,”
Balchunas noted.
Filing signals looming SEC submission
Registering a trust in Delaware often precedes a formal S-1 registration statement or 19b-4 filing with the Securities and Exchange Commission (SEC). The filing comes as U.S. regulators show increasing willingness to approve diverse crypto-based investment products, aligning with President Donald Trump’s pledge to position the country as the global “crypto capital.”
If approved, the Bitcoin Premium Income ETF would complement BlackRock’s iShares Bitcoin ETF, which has already attracted over $60.7 billion in inflows since its January 2024 debut — the largest crypto ETF on record. Fidelity’s Wise Origin Bitcoin Fund (FBTC) trails in second place with $12.3 billion.
No Altcoin ETF plans, for now
While the SEC recently introduced a generic listing standard that could accelerate crypto ETF approvals, Balchunas suggested that BlackRock is deliberately steering clear of the altcoin ETF race.
“This makes the horse race for these other coins much more wide open,”
he said.
Instead, the asset manager appears to be focused solely on Bitcoin and Ether, leaving the door open for rivals to lead in products tied to Litecoin, Solana, XRP, and Dogecoin.
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