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Rizwan Ansari
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Sohrab KhawasSohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Jan 27, 2026 05:08 UTC
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BlackRock Files Bitcoin Income ETF as Institutions Shift Strategy
BlackRock files new Bitcoin income ETF targeting steady returns alongside direct Bitcoin exposure.
ETF plans to use covered call options to generate monthly income from Bitcoin volatility.
Meanwhile, this Income strategy could deliver 8 to 12% yearly returns from option premiums.
The global asset manager BlackRock, which oversees nearly $14 trillion, has filed for a new iShares Bitcoin Premium Income ETF, aiming to combine Bitcoin exposure with steady returns.
BlackRock is once again expanding its Bitcoin strategy, this time with a product aimed at income-focused investors.
How the Bitcoin Premium Income ETF Works
According to the newly filed S-1 document, the ETF will hold Bitcoin directly, shares of BlackRock’s spot Bitcoin ETF IBIT, and cash. What makes this product different is its income strategy.
Instead of relying only on Bitcoin’s price movement, the fund plans to sell covered call options, mainly on IBIT shares. This approach is designed to generate option premiums that could be paid out as monthly income.
This strategy targets investors who want Bitcoin exposure but are also looking for steady returns during periods of high volatility.
This will allow the fund to earn option premiums, which could deliver 8% to 12% in annual income, similar to income strategies used in equity markets. Eventually, these returns would come from option premiums, not from Bitcoin price increases.
Past IBIT Success Reflects Confidence
The filing builds on the massive success of iShares Bitcoin Trust (IBIT), which launched in January 2024 and has grown to nearly $70 billion in assets, making it the largest spot Bitcoin ETF in the market.
While the new income ETF has no ticker symbol or fee announced yet, it will still need approval from the U.S. Securities and Exchange Commission (SEC) before launch.
ETF Outflows Show Cautious Institutional Mood
At the same time, ETF data shows a more cautious mood among institutions. Over the past week, Bitcoin spot ETFs recorded $1.32 billion in net outflows. BlackRock’s IBIT led these withdrawals with about $537 million exiting the fund, while Fidelity saw around $656 million in outflows.
Analysts say these moves likely reflect risk management and short-term caution, not a loss of belief in Bitcoin’s future.
As of now, Bitcoin is trading around $88,565, seeing a 1% jump in the last 24 hours.
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FAQs
It’s a proposed ETF that offers Bitcoin exposure while generating monthly income by selling covered call options on Bitcoin ETF holdings.
Based on similar strategies, the ETF could target roughly 8%–12% annual income, mainly from option premiums, not Bitcoin appreciation.
Yes. The ETF plans to hold Bitcoin directly, shares of BlackRock’s IBIT spot Bitcoin ETF, and cash for liquidity management.
It’s not yet available; the SEC must approve it first. No launch date, ticker, or fee has been announced, following BlackRock’s recent regulatory filing.
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