BlackRock has filed for a Bitcoin premium income ETF in Delaware. The application was submitted today. The goal is to launch a fund that pays investors income using premiums tied to Bitcoin.
This isn’t the same kind of product as their earlier spot Bitcoin ETF. It’s built to hand out actual income, not track the price of Bitcoin.
This filing follows the success of BlackRock’s spot Bitcoin ETF, known as IBIT, which reached $90 billion in assets by September, and now controls 60% of the U.S. Bitcoin ETF market. Both BlackRock’s Bitcoin and Ethereum ETFs have achieved over $260 million in annual revenue within two years.
BlackRock shifts focus to Bitcoin income generation
The new fund is built for yield-focused investors; people who want income, not just exposure to Bitcoin’s price. That’s different from IBIT, which only follows Bitcoin’s price movements. This premium income ETF will likely use Bitcoin-linked strategies to generate steady payouts. A BlackRock statement said, “Investors are looking for ways to benefit from Bitcoin while minimizing price volatility.”
The company has already raked in serious cash from its crypto lineup. Its Bitcoin and Ethereum ETFs pulled in $260 million in yearly revenue, and that was in under two years. And BlackRock didn’t stop at launching ETFs. It’s been adding crypto to its model portfolios too. They’re now allocating 1% to 2% of those portfolios to Bitcoin, giving regular investors small but steady exposure to digital assets.
The new income-focused ETF also targets a different type of investor than their previous products, and instead of tracking value, this ETF will focus on generating returns from Bitcoin premiums, which could come from covered call strategies or similar income-producing methods.
BlackRock’s statement continued, “There’s a growing class of investors who want to access Bitcoin’s potential without being exposed to its full volatility.” The firm said this new fund was made to meet that demand directly.
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