BlackRock advances iShares Bitcoin Premium Income ETF procedure with S-1 filing

BlackRock has dropped the official S-1 for its upcoming iShares Bitcoin Premium Income ETF. According to the document, the asset manager filed for an S-1 on January 23, 2026. The filing marks a step toward launching the Bitcoin-focused income ETF under the iShares platform.

According to Eric Balchunas, a senior ETF analyst at Bloomberg, the strategy is to “track performance of the price of bitcoin while providing premium income through an actively managed strategy of writing (selling) call options primarily on IBIT shares and, from time to time, on ETP Indices.”

This filing follows the success of BlackRock’s spot Bitcoin ETF, known as IBIT, which now holds approximately $69.85 billion in assets and remains the dominant US Bitcoin ETF by market share. Both BlackRock’s Bitcoin and Ethereum ETFs have generated over $260 million in combined annual revenue within two years.

Bitcoin Premium Income ETF to offer yields of 8-12% annually 

The new fund is built for investors who want income, not just exposure to Bitcoin’s price. While IBIT tracks the spot price of Bitcoin, the Premium Income ETF adds an options overlay to extract extra income. 

According to the filing, the trust will invest mainly in Bitcoin, IBIT shares, and cash reserves. It will also generate yield through call option writing on IBIT or index-tracking spot Bitcoin exchange-traded products.

The proposed fund would use a covered call strategy on the Bitcoin holdings. Here, the investor would buy the Bitcoins while selling the call options on the purchased Bitcoins. The covered call strategy would sell the out-of-the-money options on the Bitcoins to earn premiums, which would be 8-12% annually, like other equity opportunities.

The fund will register as a spot product under US securities law. The strategy offers two potential benefits for investors: it generates regular income from option premiums and provides downside protection during market declines. However, the strategy may limit upside participation during strong Bitcoin rallies.

As reported by Cryptopolitan, BlackRock previously registered an entity for this ETF in Delaware last September. The firm has not yet disclosed the ticker symbol or management fees. According to industry analysts, competitive fee structures are likely to mirror the firm’s existing IBIT product, which charges 0.25% annually. 

BlackRock IBIT leads in daily outflows

Last week, Bitcoin spot exchange-traded funds saw $1.32 billion in outflows. Wednesday’s $708.7 million marked the sixth-largest single-day exodus since launch.

BlackRock’s iShares Bitcoin Trust led daily outflows, with $22.35 million. However, IBIT remains the dominant product, holding $69.84 billion in assets and nearly 4% of the Bitcoin supply represented in ETFs.

Fidelity’s FBTC followed with $9.76 million in outflows, while Grayscale’s GBTC reported flat daily flows but remains deeply negative overall, with $25.58 billion in cumulative net outflows. Other issuers, including Bitwise, Ark, 21Shares, VanEck, Invesco, Valkyrie, Franklin, and WisdomTree, recorded largely unchanged flows, suggesting a pause rather than broad panic selling.

Bitcoin price lost nearly 3% over the weekend, and although it attempted a bounce on Monday, gaining 1.3%, it still trades below the $90k threshold. BTC is holding last week’s local lows, beneath the moving average grid, and opening a direct path to test the lower boundary of the two-month consolidation range between $85,000 and $82,000.

According to LMAX strategist, crypto markets “bore the brunt of deteriorating global risk sentiment” as “unpredictability of the US administration, renewed fears of an unwind in the yen carry trade, and broader implications for global growth drove defensive positioning”.

Technical analysis shows that in the medium term, Bitcoin continues to target last year’s April lows around $74,000, or as low as $68,000 on the weekly chart, where the 200-week exponential moving average currently runs. The kingcoin has seen a 0.5% decline over the last 24 hours, trading at $ 88,171.

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