Asset management giant BlackRock has filed to register a Delaware trust company for its proposed Bitcoin Premium Income ETF, signaling a push to broaden its Bitcoin offerings. According to Bloomberg ETF analyst Eric Balchunas, the product would sell covered call options on Bitcoin futures, collecting premiums to generate yield for investors. However, this strategy trades away potential upside from direct Bitcoin investment, unlike BlackRock's spot Bitcoin ETF (IBIT), which mirrors BTC's price movements.
Balchunas described the filing as a '33 Act spot product, sequel to the $87 billion IBIT'. The trust registration typically precedes an imminent S-1 or 19b-4 filing with the SEC, kicking off the official approval process. This move comes as US regulators, under the Trump administration, show openness to a wider range of crypto investment products, with the SEC recently approving a generic listing standard that could accelerate ETF approvals for cryptocurrencies like Solana and XRP.
BlackRock's existing iShares Bitcoin Trust (IBIT) has attracted over $60.7 billion in inflows since its January 2024 launch, far outpacing competitors. The firm's digital asset business is scaling rapidly, with Bitcoin and Ether ETFs generating more than $260 million in annual revenue. On-chain data reveals BlackRock holds over 756,000 BTC valued at $85.29 billion, cementing its position as the largest institutional custodian of Bitcoin.