BlackRock's New Bitcoin ETF Seeks Income with Covered Call Strategy

BlackRock's iShares Bitcoin Premium Income ETF is edging closer to its July launch date. The fund aims to track the price of BTC, while generating income through a covered call strategy.

The fund's fourth amendment to the registration statement was submitted to the SEC on June 9, moving it further through the federal approval process. The sponsor's fee for the fund will be 0.65%, lower than two existing covered call Bitcoin ETFs that charge 0.95% and 0.99% respectively.

The filing states that the fund will 'reflect generally the performance of the price of BTC while providing premium income through an actively managed strategy of writing (selling) call options primarily on IBIT shares and, from time to time, on ETP Indices.'

Eric Balchunas, Bloomberg Senior ETF Analyst, expects the fund to launch 'very soon' due to competitive pressure from Goldman Sachs' planned July 1 Bitcoin ETF filing. He noted that both products would compete for the same pool of institutional capital seeking BTC exposure with an income component.