Designed to leverage Bitcoin’s volatility, BlackRock’s covered-call fund could disrupt the crypto ETF market.
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
BlackRock is extending its push into Bitcoin with a new fund designed to turn the asset’s volatility into investor yield.
On Sept. 25, Bloomberg ETF analyst Eric Balchunas revealed that the firm had filed for a product called the iShares Bitcoin Premium ETF, a covered-call fund structured under the ’33 Act.
Unlike a traditional spot ETF that passively tracks Bitcoin’s price, the new product would layer an income strategy on top of BTC exposure. It plans to hold Bitcoin or related instruments while writing covered calls against those holdings to earn premiums.
Those premiums would then be distributed to investors as income, allowing the fund to capture value from Bitcoin’s frequent price swings rather than simply mirror them.
Meanwhile, Balchunas noted that this move could unsettle rival issuers already building income-based Bitcoin products, given BlackRock’s dominant position in the spot ETF market.
The firm’s flagship iShares Bitcoin Trust (IBIT) has grown into the largest crypto ETF globally, managing tens of billions in assets since its launch last year.
Balchunas pointed out that the latest filing illustrates BlackRock’s strategic focus on Bitcoin and Ethereum, rather than joining competitors in pursuing ETFs tied to smaller altcoins.
Over the past months, several issuers, including Grayscale, have applied for products linked to assets like XRP and Solana.
However, BlackRock appears content to double down on the proven market leaders.
That strong conviction appears to be paying off as the firm’s early Bitcoin and Ethereum ETFs generate over $260 million in annual revenue.
Speaking on these numbers, Leon Waidman, the head of research at Onchain Foundation, said:
“[BlackRock built] a quarter-billion-dollar business, almost overnight. For comparison, many fintech unicorns don’t make that in a decade. This isn’t experimentation anymore. The world’s largest asset manager has proven that crypto is a serious profit center.”
However, the firm’s global head of digital assets, Robbie Mitchnick, argued that institutional participation in crypto ETFs remains in its early stages, suggesting more capital could flow in as regulated offerings mature.
Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
Also known as “Akiba,” Liam Wright is the Editor-in-Chief at CryptoSlate and host of the SlateCast. He believes that decentralized technology has the potential to make widespread positive change.
Get the latest crypto news and expert insights. Delivered to you daily.
CryptoSlate’s latest market report compares Bitcoin and DeFi to some of the most established benchmarks in traditional finance.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
Celebrating eight years of innovation, TRON pledges resilience and advances as a financial inclusion powerhouse.
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
The XRP Ledger is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
The BlackRock Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT), is an investment fund that provides regulated exposure to Bitcoin for investors.
Eric Balchunas is an American author, ETF analyst, and Senior ETF Analyst at Bloomberg Intelligence.
Get the latest crypto news, insights and market analysis straight to your inbox.
We respect your privacy and will never share your email address.
Please add [email protected] to your email whitelist. You may unsubscribe at any time.
Disclaimer: By using this website, you agree to our Terms and Conditions and Privacy Policy. CryptoSlate has no affiliation or relationship with any coin, business, project unless explicitly stated otherwise. CryptoSlate is only an informational website that provides news about coins, blockchain companies, blockchain products and blockchain events. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence before making any investment decisions. CryptoSlate is not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on the site.
© 2025 CryptoSlate. All rights reserved. Terms & Conditions | Privacy Policy
Act fast to join the 5-day Crypto Investor Blueprint and avoid the mistakes most investors make.
Please add [email protected] to your email whitelist.
Stay connected 👇