BlackRock is launching a new type of Bitcoin income ETF that uses a covered call strategy

ChainCatcher news, according to Bloomberg ETF analyst Eric Balchunas, BlackRock has filed to launch a new product called iShares Bitcoin Premium ETF, which is a fund that employs a covered call strategy.

Unlike traditional spot ETFs that passively track the price of Bitcoin, this product will hold Bitcoin or related instruments while earning premiums by selling covered call options, distributing these earnings as income to investors, thereby converting Bitcoin's volatility into investment returns. Balchunas pointed out that this move could impact competitors that are already developing income-based Bitcoin products.