This will allow the fund to earn option premiums, which could deliver 8% to 12% in annual income, similar to income strategies used in equity markets. Eventually, these returns would come from option premiums, not from Bitcoin price increases.
Past IBIT Success Reflects Confidence
The filing builds on the massive success of iShares Bitcoin Trust (IBIT), which launched in January 2024 and has grown to nearly $70 billion in assets, making it the largest spot Bitcoin ETF in the market.
While the new income ETF has no ticker symbol or fee announced yet, it will still need approval from the U.S. Securities and Exchange Commission (SEC) before launch.
ETF Outflows Show Cautious Institutional Mood
At the same time, ETF data shows a more cautious mood among institutions. Over the past week, Bitcoin spot ETFs recorded $1.32 billion in net outflows. BlackRock’s IBIT led these withdrawals with about $537 million exiting the fund, while Fidelity saw around $656 million in outflows.
Analysts say these moves likely reflect risk management and short-term caution, not a loss of belief in Bitcoin’s future.
As of now, Bitcoin is trading around $88,565, seeing a 1% jump in the last 24 hours.
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FAQs
It’s a proposed ETF that offers Bitcoin exposure while generating monthly income by selling covered call options on Bitcoin ETF holdings.
Based on similar strategies, the ETF could target roughly 8%–12% annual income, mainly from option premiums, not Bitcoin appreciation.
Yes. The ETF plans to hold Bitcoin directly, shares of BlackRock’s IBIT spot Bitcoin ETF, and cash for liquidity management.
It’s not yet available; the SEC must approve it first. No launch date, ticker, or fee has been announced, following BlackRock’s recent regulatory filing.
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