BlackRock Expands Crypto Offerings with Bitcoin Premium Income ETF
BlackRock, the world's largest asset manager, is expanding its crypto offerings. It has registered the iShares Bitcoin Premium Income ETF, a covered-call strategy designed to generate yield from Bitcoin. This move follows the U.S. SEC's approval of faster ETF approval processes, with a launch expected within 75 days after final approval.
BlackRock's crypto business has flourished, with its Bitcoin and Ethereum ETFs generating over $260 million annually. The firm is the largest institutional custodian of both cryptocurrencies, holding over 756,000 BTC ($85.3B) and 3.8M ETH ($16B).
The new ETF, a 'sequel' to its successful spot Bitcoin ETF (IBIT), aims to attract income-oriented investors. It will generate yield by selling covered call options on Bitcoin futures, providing income while limiting upside potential. This strategy could reshape the crypto ETF market, potentially leaving altcoin ETFs in limbo, as BlackRock concentrates on Bitcoin and Ethereum.
BlackRock's iShares Bitcoin Premium Income ETF, pending SEC approval, is set to launch in late 2025 or early 2026. This new product signals BlackRock's continued focus on Bitcoin and Ethereum, potentially reshaping the crypto ETF landscape.
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