BlackRock looks to bring yield-generation to Bitcoin investments with iShares Bitcoin Premium Income ETF

BlackRock has filed with the SEC for a new investment product, the iShares Bitcoin Premium Income ETF, which aims to provide investors with direct spot Bitcoin exposure while simultaneously generating income. Similar to its existing IBIT Bitcoin ETF, this new fund will primarily hold actual bitcoin. However, it will generate yield through an actively managed "covered-call" strategy, where the investment advisor sells call options, mainly on IBIT shares or other Bitcoin-tracking ETP indices, to capture option premiums as income. This structure is common among crypto investment products that trade potential upside for regular income generation, akin to how some ETH or SOL funds generate income through staking. BlackRock's current iShares Bitcoin ETF (IBIT) is the largest spot bitcoin fund, managing approximately $69.75 billion in assets.

(Source：The Block)