BlackRock Prepares to Launch Bitcoin Premium Income ETF – A Step to Expand Cryptocurrency Product Portfolio
BlackRock – the world’s largest asset management group – has just taken a step forward in its cryptocurrency strategy by registering a Delaware trust company for Bitcoin Premium Income ETF. This move shows that BlackRock is not stopping at spot ETF (IBIT) but is aiming to develop products that generate periodic profits from Bitcoin.
How the new product works
According to experts, this ETF will deploy a strategy of selling covered call options on Bitcoin futures contracts. This approach allows the fund to collect option fees as a source of income, while limiting part of the potential for direct price increases compared to spot Bitcoin. Thus, the product is designed to suit institutional investors who want to both access Bitcoin and have a stable source of income instead of just depending on price fluctuations.
Competitive Landscape and Market Trends
The US market has now witnessed the explosion of spot Bitcoin ETFs with daily trading volumes of $5-10 billion, sometimes even surpassing major cryptocurrency exchanges. In this race, BlackRock's iShares Bitcoin ETF (IBIT) has emerged as the leading fund, attracting over $60 billion in inflows since January 2024. The addition of an income-generating ETF is clearly a strategic move to consolidate its dominance.
Apart from BlackRock, several other entities are also testing similar products. NEOS Investments launched a Bitcoin High Income ETF (BTCI) with a declared yield of 2.39% (30 days to June 2025). Amplify ETF also launched two new funds targeting option premiums of 24% to 60% per annum. This reflects a broader trend: Bitcoin is no longer seen as a speculative asset, but as a financial instrument capable of generating cash flows.
Strategic significance
Unlike some ETF companies that are expanding into altcoins, BlackRock has chosen to focus on Bitcoin and Ethereum – the two core digital assets with the highest liquidity and adoption. This is a signal that the group wants to build a more solid, secure investment platform for institutions before expanding into riskier products.
Moreover, market research shows that Bitcoin's annual volatility in 2025 has decreased by 75% compared to previous bubble periods, largely due to the increased participation of institutional investors and higher liquidity depth. This creates favorable conditions for options-based income-generating strategies to operate more effectively.
Conclusion
With the Bitcoin Premium Income ETF, BlackRock is taking steps to make cryptocurrencies a necessary part of traditional financial portfolios. If approved by the SEC, this product will not only expand the options for investors but also mark a new stage of maturity for the Bitcoin ETF market in the US.