BlackRock Files for Bitcoin Premium Income ETF

On the 23rd, U.S. asset management giant BlackRock filed with the Securities and Exchange Commission (SEC) for a new iShares Bitcoin Premium Income ETF that combines direct investment in Bitcoin (BTC) with yield generation. Like the existing IBIT Bitcoin ETF, it will hold actual Bitcoin to track its price.

The new fund employs an aggressive covered call strategy to generate revenue. Investment advisors will primarily sell call options on IBIT shares, securing the premiums as income. Options on other Bitcoin-tracking ETP indices will also be utilized to some extent.

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