CMC News

#BlackRock Files $BTC Premium Income #ETF

BlackRock registered a Delaware trust company for its proposed $BTC Premium Income ETF on Thursday, signaling expansion beyond its $87 billion spot $BTC fund IBIT. The yield-generating product would use covered call options on $BTC futures to collect premiums for regular distributions.

The strategy trades potential upside for steady income, complementing BlackRock's spot $BTC ETF that mirrors price movements. #ETF analyst Eric Balchunas called it a "sequel to the $87B $IBIT," noting the covered call approach would provide $BTC yield through options premiums.

Delaware trust registration typically precedes S-1 or 19b-4 filings with the #SEC to begin approval processes officially. The Securities and Exchange Commission has shown increased openness to diverse crypto investment products under the Trump administration's crypto-friendly agenda.

IBIT has attracted over $60.7 billion in inflows since launching in January 2024, far exceeding competitors. Fidelity's FBTC ranks second with $12.3 billion in inflows. The proposed premium income fund would address Bitcoin's lack of native yield generation, a historical concern for traditional finance institutions.