BlackRock files for US$12.5 trillion 'Bitcoin Premium Income ETF'

Doohyun Hwang

Summary

BlackRock has filed for a US$12.5 trillion 'Bitcoin Premium Income ETF' with the U.S. Securities and Exchange Commission (SEC).
The product combines income-generating strategies such as covered call options to provide investors with stable cash flow and bitcoin's long-term upside potential simultaneously.
The SEC has shown a conservative stance toward income-oriented ETFs that include options strategies, so approval is uncertain.

The world's largest asset manager BlackRock reportedly submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch a "Bitcoin Premium Income ETF" valued at US$12.5 trillion.

On the 25th (local time), according to KuCoin, BlackRock plans to list this ETF on Nasdaq, and bitcoin custody is expected to use Coinbase Custody, as with existing ETFs.

This product is characterized by combining income-generating strategies such as covered call options, beyond merely tracking bitcoin's price. Through this, investors can enjoy bitcoin's long-term upside potential while also expecting a stable cash flow. Industry sources expect the product to be designed to target an annual dividend yield of 5~10%.

However, approval is uncertain. While the SEC has approved spot bitcoin ETFs so far, it remains conservative toward income-oriented ETFs that include options strategies. An industry official explained, "BlackRock's move shows an attempt to incorporate bitcoin into regulated investment portfolios as more than a speculative asset," adding, "however, regulatory and market stability challenges will follow."

BTC