BlackRock Plans Bitcoin Yield ETF as Follow-Up to IBIT

     

Asset manager eyes covered-call strategy to generate income, expanding beyond $87B spot ETF

BlackRock is preparing to launch a Bitcoin Premium Income ETF, positioning it as a yield-generating companion to its blockbuster spot Bitcoin ETF, IBIT. The firm filed to establish a Delaware trust company on Thursday, a step that typically precedes a formal ETF application with the Securities and Exchange Commission.

According to Bloomberg ETF analyst Eric Balchunas, the fund would employ a covered-call strategy, selling options on Bitcoin futures to collect premiums and deliver regular income to investors. While the trade-off is capped upside compared to direct exposure via IBIT, it would mark one of the first structured yield products tied to Bitcoin in US markets.

Balchunas described the product as a “‘33 Act spot sequel” to IBIT, which has grown to $87 billion in assets under management and remains the largest Bitcoin ETF globally.

Yield strategies emerge as Bitcoin matures

The filing reflects a broader push to address one of Bitcoin’s long-standing drawbacks: its lack of native yield. Traditional finance firms have begun experimenting with income-generating vehicles, from convertible preferred stock backed by corporate Bitcoin reserves to structured derivatives.

If approved, BlackRock’s ETF would expand this niche and provide investors with a regulated yield play on Bitcoin, complementing pure spot exposure.

Staying focused on BTC and ETH amid ETF race

Balchunas added that while the market braces for ETFs based on a wide range of cryptocurrencies, BlackRock appears committed to building products around Bitcoin and Ether.

“This shows they’re going to double down on BTC and ETH and leave the rest of the field wide open,” he noted.

The SEC recently cleared the path for faster approvals by adopting a generic listing standard, raising expectations that altcoin ETFs for assets like Solana, Litecoin, XRP, and Dogecoin could soon follow.