BlackRock is taking another big step into crypto ETFs — and this time, it’s all about income.
The firm has filed for the iShares Bitcoin Premium Income ETF, an actively managed fund that would hold Bitcoin (directly or through IBIT) and generate yield by selling call options on that exposure. It’s a classic covered-call strategy, but applied to one of the most volatile and in-demand assets in the market.
What makes this interesting is BlackRock’s timing.
#IBIT has already become a massive success, with more than $69B in assets, and now the firm is looking to capture investors who want cash flow from their Bitcoin exposure — not just price appreciation.
The tradeoff, of course, is that covered-call products limit upside during big rallies. But for income-focused investors, especially in today’s choppy macro environment, the idea of turning Bitcoin volatility into regular distributions is likely to get a lot of attention.
It’s early days — the ETF doesn’t yet have a ticker or fee — but BlackRock’s move signals that crypto income products are about to get a lot more competitive.
#Bitcoin #CryptoNews #ETFs