Tristan is a technology journalist and editorial leader with 8 years of experience covering science, deep tech, finance, politics, and business. Before joining Coinspeaker, he wrote for Cointelegraph and TNW.
Key Notes
- BlackRock's proposed ETF would actively manage Bitcoin holdings by writing call options to generate premium income for investors.
- The filing signals a shift from viewing Bitcoin purely as a passive store of value toward yield-generating investment products.
- Investors could earn monthly income but may face capped returns if Bitcoin prices surge dramatically while options are active.
Global investment firm BlackRock has filed an S-1 application form with the US Securities and Exchange Commission (SEC) to launch an iShares Bitcoin BTC $88 080 24h volatility: 2.0% Market cap: $1.76 T Vol. 24h: $52.63 B Premium Income ETF.
While not yet approved, the new ETF product would consist primarily of Bitcoin, with shares of iShares Bitcoin Trust ETF (IBIT) and cash premiums. According to the S-1 filing, it would function as a yield-bearing product whose performance will be based on the price of Bitcoin “while providing premium income through an actively managed strategy of writing (selling) call options on IBIT shares.”
BlackRock just dropped the official S-1 for it's upcoming iShares Bitcoin Premium Income ETF.. no fee or ticker yet. The strategy is to "track performance of the price of bitcoin while providing premium income through an actively managed strategy of writing (selling) call options… pic.twitter.com/CZDahm4mNj
— Eric Balchunas (@EricBalchunas) January 26, 2026
The Bitcoin Income Strategy
The S-1 document, a preliminary filing, is dated Jan. 23 with no clear timeline for approval. Typically, SEC approvals for S-1 documents can take months due to the necessity for issuance and potential rule changes in support of the filing. If approved, however, the new ETF would trade on the NASDAQ exchange under an as-yet-to-be-named ticker. A space on the form where the firm could have indicated a preferred or requested ticker was left blank.
While similar products exist in the form of the Grayscale Bitcoin Premium Income ETF, launched in April 2025, and the YieldMax Bitcoin Option Income Strategy ETF, which launched in April 2024, BlackRock’s represents the largest to date and signals a greater shift away from the tradfi view of Bitcoin as a passive store of value.
These ETFs are actively managed by institutional traders who monitor markets in real-time. Investors’ funds are held in Bitcoin itself and, in BlackRock’s case, also in shares of its Bitcoin Spot ETF product. Fund managers are able to write call options against these holdings which, under optimal circumstances, results in cash premiums from selling these options.
This allows investors to treat Bitcoin as both a store of value and a yield-bearing asset that provides monthly income. This could serve as a bulwark against cryptocurrency volatility, but it also means investors could see income capped if Bitcoin skyrockets while direct holders benefit.
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