Bitcoin News

Story: BlackRock’s iShares Bitcoin Income ETF Targets Yield With 0.65% Fee

By Pankaj K

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Covered Calls on Bitcoin: The Yield Play. The mechanics matter here. A covered call strategy means the fund holds the underlying asset — in…

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Goldman Sachs Is Watching Closely. BlackRock isn't alone in this race. Goldman Sachs is also pushing hard into Bitcoin-focused ETF…

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Regulatory Hurdles Still Ahead. The amendment still needs regulatory approval before anything gets to market.

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BlackRock filed an amendment for its iShares Bitcoin Premium Income ETF, locking in a 0.65% sponsor fee.

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The filing is short on operational details, but the core idea is clear enough. BlackRock plans to write call options on IBIT shares, collecting premiums in the process.

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The mechanics matter here. A covered call strategy means the fund holds the underlying asset — in this case, exposure through IBIT shares — and simultaneously sells call options…

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For a lot of institutional investors and income-focused retail buyers, that's probably fine. They're not necessarily trying to triple their money on Bitcoin.

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BlackRock is writing options on IBIT shares specifically — that's its own iShares Bitcoin Trust — and also on related ETP indexes.

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BlackRock isn't alone in this race. Goldman Sachs is also pushing hard into Bitcoin-focused ETF territory, and the two firms are basically neck and neck in the scramble for…

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Related: Corporate Bitcoin Demand Dries Up as ETF Outflows Pile On

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The competition between these two giants says something bigger about where traditional finance is right now.

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And it's not just about Bitcoin maximalists. A covered call income ETF targets a completely different investor profile — pension funds, wealth managers, retirees looking for yield.

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The amendment still needs regulatory approval before anything gets to market. BlackRock hasn't given a timeline, and the filing itself doesn't spell one out.

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No official launch date. No comment on the approval timeline. Stakeholders are watching the regulatory channels closely, and there's no indication yet of how long the review will…

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Read also: Traditional Finance Advisers Want Stablecoins and Tokenization, Not Bitcoin, Bitwise Says

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