TLDR
- BlackRock files with SEC to launch a Bitcoin ETF that offers monthly income.
- iShares Bitcoin Premium Income ETF aims to combine Bitcoin exposure and options strategy.
- The ETF will hold Bitcoin, iShares Bitcoin Trust, and cash from options writing.
- Coinbase Custody will safeguard the Bitcoin assets in the new ETF.
BlackRock, via its iShares division, has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) to launch a new Bitcoin-focused exchange-traded fund (ETF). This proposed fund, named the iShares Bitcoin Premium Income ETF, aims to provide investors with exposure to Bitcoin while generating recurring income through an actively managed covered call options strategy.
JUST IN: BLACKROCK FILES S1 FOR A NEW BITCOIN PREMIUM INCOME ETF
iShares Premium Income ETF: "provide monthly premium income by selling monthly covered call options."
Financialization of Bitcoin continues to accelerate…
Is This good a bad for Bitcoin? pic.twitter.com/F33rFSM5SJ— Discover Crypto (@DiscoverCrypto) January 26, 2026
The filing signals BlackRock’s continued interest in the growing cryptocurrency space. This move comes as the company remains a dominant player in the crypto exchange-traded product (ETP) market, with its iShares Bitcoin Trust ETF (IBIT) holding almost $70 billion in assets. The proposed ETF intends to build on this success by integrating an income-focused strategy.
Fund Structure and Investment Strategy
The iShares Bitcoin Premium Income ETF will be structured as a Delaware statutory trust. The fund will hold three key components: Bitcoin, shares of the existing iShares Bitcoin Trust ETF (IBIT), and cash generated from the covered call options strategy. The fund aims to offer investors the opportunity to profit from Bitcoin price movements, while also generating income through writing call options.
Covered call options are a popular strategy where the ETF sells call options on the underlying assets it holds. In this case, the options will primarily be written on IBIT shares, or sometimes on Bitcoin exchange-traded products (ETPs) linked to the spot price of Bitcoin. This allows the fund to earn premiums from the options it sells, which are then distributed to investors as monthly income.
The fund’s actively managed approach will give it flexibility to adjust its options positions in response to market conditions. This strategy allows the ETF to benefit from Bitcoin’s potential price increases while generating income from option premiums.
Custodianship and Administration
To ensure the safekeeping of Bitcoin assets, BlackRock has designated Coinbase Custody Trust Company as the primary custodian for the fund’s Bitcoin holdings. Coinbase Custody is a well-known cryptocurrency custodian that offers secure storage solutions for institutional clients. In addition, Anchorage Digital Bank has been named as an alternative custodian, providing added security for the fund’s digital assets.
For the cash and securities portions of the fund, Bank of New York Mellon will manage custody and trust administration. Bank of New York Mellon has a long history of managing financial assets and will provide critical infrastructure for the fund’s operations.
BlackRock’s Continued Leadership in Crypto ETPs
The filing for the iShares Bitcoin Premium Income ETF occurs amid BlackRock’s leadership in the cryptocurrency ETP market. The company’s IBIT fund remains the largest Bitcoin-focused ETP, holding nearly $70 billion in assets under management. Despite recent fluctuations in the cryptocurrency market, BlackRock’s IBIT fund continues to perform well and maintain a dominant market position.
As the cryptocurrency space continues to evolve, BlackRock’s move to create an income-focused Bitcoin ETF reflects its commitment to innovating in the digital asset space. By offering a product that combines Bitcoin exposure with the ability to generate regular income, BlackRock is positioning itself to appeal to a broader range of institutional and retail investors looking for alternative investment opportunities.
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