The world's largest asset manager BlackRock has filed an application with the US Securities and Exchange Commission to launch the iShares Bitcoin Premium Income ETF. The fund aims to provide investors with regular income through the sale of call options on Bitcoin positions.
The new ETF builds on the existing iShares Bitcoin Trust (IBIT). With over $69 billion in AUM, IBIT is the largest Bitcoin spot ETF worldwide. BlackRock manages approximately $14 trillion in client assets overall. The application does not include a ticker symbol or details on management fees.
Subscribe to our newsletter
The best articles of the week, directly delivered into your mailbox.
How the covered call strategy works
The covered call strategy generates income through the systematic sale of call options on Bitcoin holdings. The fund holds both direct Bitcoin and shares of the existing IBIT ETF. Through option sales, the fund collects premiums that are distributed to investors.
The mechanism works as follows: BlackRock sells a counterparty the right to purchase IBIT shares at a predetermined price. In return, the fund collects a premium. If the Bitcoin price rises above the strike price, investors do not benefit from further gains. The strategy thus trades upside potential for ongoing income. And with volatile underlying assets like Bitcoin, these premiums can be substantial.
Coinbase handles custody of the Bitcoin holdings. BNY Mellon serves as custodian for cash and IBIT shares.
Competition in the Bitcoin income product market
BlackRock is entering a market where several providers are already active. The Roundhill Bitcoin Covered Call Strategy ETF (YBTC) has a distribution yield of 36 percent. The NEOS Bitcoin High Income ETF (BTCI) reaches 27 percent, while the Amplify Bitcoin Max Income Covered Call ETF (BAGY) achieves 37 percent.
At first glance, the existing products show a key disadvantage. YBTC lost approximately 47 percent in price over the past twelve months. BTCI declined about 33 percent. Bitcoin itself recorded a 14 percent drop during the same period. However, these price losses are calculated without distributions. When factoring in the received premiums, the picture changes: YBTC achieved a total return of minus 13 percent, BTCI of minus 11 percent. Both covered call ETFs thus slightly outperformed a pure Bitcoin investment during this period.
The higher fees of actively managed income ETFs represent an additional cost factor. A passive spot Bitcoin ETF like IBIT incurs lower ongoing costs since it does not trade derivatives or make discretionary strategy decisions.
BlackRock's dominance in the Bitcoin ETF market
The iShares Bitcoin Trust has recorded over $62 billion in net inflows since its launch in January 2024. In 2024, approximately $37 billion flowed into the fund. An additional $25 billion followed in 2025. Through price appreciation, IBIT reached the $70 billion AUM mark in just 341 days. No other ETF achieved this faster.
The SEC first approved spot Bitcoin ETFs in the US on January 10, 2024. Previously, the agency had rejected over 20 such applications over a period of more than five years. A court ruling in 2023 forced the SEC to reconsider. The court found the agency had not adequately justified its rejection of the Grayscale application.
BlackRock CEO Larry Fink has significantly changed his stance on Bitcoin in recent years. In his 2025 shareholder letter, he warned that US national debt is growing three times faster than gross domestic product. Bitcoin could gain importance as an alternative to the dollar.
"Crypto assets or gold are assets of fear. You own these assets because you fear the devaluation of your assets." - Larry Fink, BlackRock CEO, Future Investment Initiative Conference, Riyadh, October 2025
Regulatory process and outlook
The SEC has opened a public comment period on the rule change proposal that would allow the ETF to list on Nasdaq. BlackRock had already registered the trust in Delaware in September 2025. The asset manager informed regulators that the product will meet the generic listing standards effective from the first quarter of 2026.
BlackRock's market entry should intensify competition in the Bitcoin income product segment. The brand and distribution strength of the world's largest asset manager could generate significant inflows, even if the strategy has structural disadvantages compared to a pure spot investment. For income-oriented investors who already have Bitcoin exposure and prefer regular distributions, the product offers an interesting addition.
