BlackRock, through its iShares entity, has filed a registration statement with the SEC seeking approval to launch the iShares Bitcoin Premium Income ETF, a new fund that would provide exposure to Bitcoin while generating recurring income through a covered call options strategy.
The ETF will be structured as a Delaware statutory trust and will hold bitcoin, shares of the iShares Bitcoin Trust ETF (IBIT), and cash, including premiums generated from options activity, according to the filing.
The fund’s objective is to provide exposure to Bitcoin price movements while delivering enhanced monthly income. This will be achieved through an actively managed covered call strategy that primarily involves writing call options on IBIT shares and, periodically, on indices linked to spot Bitcoin ETPs.
Coinbase Custody Trust Company will serve as the Bitcoin custodian, with Anchorage Digital Bank as an available alternative custodian. Bank of New York Mellon will handle cash and securities custody as well as trust administration.
BlackRock’s latest filing arrives as its IBIT fund continues to dominate the crypto ETP space. The fund, despite recent market fluctuations, now holds nearly $70 billion in assets under management.
