BlackRock Files for Bitcoin Income ETF with SEC
- BlackRock seeks SEC approval for new Bitcoin BTC -0.13% ETF.
- ETF employs a strategy using covered call options.
- Aims to provide premium income through active management.
BlackRock filed an S-1 with the SEC on January 23, 2026, for a new iShares Bitcoin Premium Income ETF, seeking Nasdaq listing with no set approval timeline.
The ETF could impact Bitcoin’s market, offering a potential 8-12% annual yield through covered call options during stable or down market conditions.
The world’s largest asset manager, BlackRock, has filed with the SEC for an iShares Bitcoin Premium Income ETF. This ETF aims to provide a new investment strategy to investors by leveraging monthly income via covered call options on IBIT. BlackRock is leading the initiative as the sponsor and investment adviser, using its existing infrastructure with the iShares Bitcoin Trust. Coinbase is the custodian for the Bitcoin holdings, and Bank of New York Mellon manages cash custody.
The filing aims to impact Bitcoin markets by introducing a product option that capitalizes on Bitcoin’s performance while generating income. The ETF does not yet have a ticker symbol, and SEC approval is still pending with no specific timeline available. This initiative could influence the financial landscape by offering a projected 8-12% annual yield in stable markets. It trades Bitcoin’s potential upside during rallies for income, showing a shift in investment strategies affecting Bitcoin directly.
This product’s approval could also drive discussion on regulatory stances regarding Bitcoin ETFs. Historical trends indicate similar strategies utilized in the Grayscale and YieldMax offerings. However, BlackRock’s version is marked as the largest potential offering in its category. Eric Balchunas from Bloomberg provides insights, noting that the ETF could offer alternative exposure to Bitcoin, combining asset value with a structured income solution. The regulatory outcome remains uncertain but may set a precedent for future applications.
“BlackRock just dropped the official S-1 for its upcoming iShares Bitcoin Premium Income ETF.. no fee or ticker yet. The strategy is to ‘track performance of the price of bitcoin while providing premium income through an actively managed strategy of writing (selling) call options…'”— Eric Balchunas, Senior ETF Analyst, Bloomberg source
