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BlackRock Files to Launch BTC Call Overwriting ETF

The "iShares Bitcoin Premium Income ETF" will hold IBIT and sell calls to earn income.
BlackRock Files to Launch BTC Call Overwriting ETF
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BlackRock is looking to expand its suite of crypto-linked ETF products. The asset manager filed Form S-1 to register its "iShares Bitcoin Bitcoin Premium Income ETF" with the SEC on Monday morning.

What's the Scoop?

  • Income Generator: Similar to other call overwriting ETFs, the proposed BlackRock fund would hold BTC exposure (primarily through BlackRock's spot IBIT ETF and sell call options against those shares. This strategy trades defined upside exposure for income through call option overwriting.
  • Key Details: Although some important fund information – like the proposed fee structure and ticker symbol – was omitted from BlackRock's initial S-1 registration statement, the filing did contain interesting details. For example, it notes that crypto exchange Coinbase Coinbase will serve as Bitcoin custodian, and that the fund will sell covered call options against 25% to 35% of net assets.

Jack Inabinet

Written by Jack Inabinet

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Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial real estate development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business.

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