BlackRock plans to launch a Bitcoin income ETF, introducing options strategies to enhance returns

BlackRock is planning to launch a new iShares Bitcoin Premium Income ETF, which aims to generate income through options strategies while providing exposure to Bitcoin spot. This plan has been disclosed in the latest filing with the U.S. Securities and Exchange Commission (SEC).

The document shows that the ETF will be similar to BlackRock's existing IBIT Bitcoin ETF, primarily tracking price performance by directly holding Bitcoin; the difference is that the new fund will also employ an actively managed "covered call" strategy, generating income by selling call options, with the main underlying being IBIT-related options. The fund has not yet announced a trading code. If successfully launched, it will further enrich the array of cryptocurrency investment products in the market that trade off some upside potential for stable income.