BlackRock is filing to launch the iShares Bitcoin Premium Income ETF, an actively managed fund that would generate income by selling call options on Bitcoin holdings while aiming to provide some downside protection.

The SEC registration describes a covered‑call strategy on Bitcoin to generate option-premium income, with an emphasis on active management of Bitcoin exposure.

The proposed fund would be a spot product similar in structure to existing spot BTC ETFs, with anticipated fees around the 0.25% range, though the ticker and exact fees have not been disclosed.

Historically, covered‑call crypto funds show attractive yields but risk NAV dilution and underperformance during sharp BTC rallies, a dynamic relevant to expectations for this new product.

The ETF would add to a growing lineup of covered‑call crypto products that trade upside for income, though it currently lacks a ticker.

Analysts note market implications include potential faster institutional adoption, growth of more complex crypto derivatives, and ongoing regulatory scrutiny around market manipulation and custody for crypto ETFs.

This approach represents a higher‑risk, higher‑fee path intended to deliver more income than passive spot BTC exposure.

Shares are expected to represent fractional interests in the fund’s income, its Bitcoin holdings, and cash.

FAQs are likely to clarify covered calls, how this differs from IBIT, potential approval timing, key risks, and target investors.

Challenges highlighted include strike-price selection, tax treatment of option premiums, and the need for a robust investor-protection framework in the prospectus, with SEC approval timelines expected to be months, not days.

The fund is positioned as a spot product that would likely operate with moderate fees and would offer monthly income through option premiums, trading competition with other crypto income ETFs.

The yield mechanism mirrors income strategies seen in other crypto ETFs, delivering income via options rather than staking.