BlackRock files for a new Bitcoin ETF via Nasdaq

Nasdaq has formally submitted a filing to the U.S. Securities and Exchange Commission (SEC) for the listing and trading of the BlackRock iShares Bitcoin Premium Income ETF. The proposed fund comes under the commodity-based trust rule, according to the September 30 submission.

The SEC recognized that the filing complies with the general listing criteria and initiated a public comment period on the proposed rule change. If approved, the product will add to BlackRock’s expanding lineup of investment products linked to Bitcoin, which builds on the success of its widely traded iShares Bitcoin Trust (IBIT).

The new fund includes a covered call mechanism that will generate a consistent yield through Bitcoin exposure, alleviating the need for income-oriented investors for pure spot price exposure.

How the Premium Income ETF differs from IBIT

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 options writing on IBIT or indices tracking for spot Bitcoin exchange-traded products.

ETF analyst Eric Balchunas described the strategy as a “sequel” to IBIT, pointing out that it is not intended to diversify into other digital assets but rather to broaden income-generating opportunities within Bitcoin exposure. The fund may also contain FLEX derivatives traded on the regulated exchanges to optimize its strategy.

The ETF aims at attracting investors who would like to invest in digital assets, but with lower volatility and fixed yields. It helps them access direct Bitcoin holdings alongside systematic option writing.

BlackRock’s iShares Bitcoin Trust has also hit an important milestone in the derivatives market. The rise of IBIT options to become the largest venue for Bitcoin options trading has shown the increasing influence that Wall Street plays in the cryptocurrency space.

According to Bloomberg, the open interest of IBIT-linked options as of Friday’s expiration was almost $38 billion, a volume exceeding the $32 billion recorded on Deribit. It occurred less than a year after the launch of IBIT options in November 2024, resulting in IBIT’s entire market share being cut since its inception in 2016.

BlackRock continues to accumulate Bitcoin and Ether

The Nasdaq filing came with new blockchain data indicating heavy crypto inflows into BlackRock’s existing ETFs. Whale Insider reported that the firm recently purchased over $199 million USD of Bitcoin using its IBIT vehicle. The purchase added more than 794 BTC, done in structured batches of approximately 100 coins each.

The transactions were conducted in Coinbase Prime hot wallets and settled directly into addresses associated with BlackRock’s IBIT ETF. Analysts said that the planned structure of the trades was indicative of a plan to minimize disruption to the market while preserving liquidity.

Along with Bitcoin, BlackRock also increased its exposure to Ethereum. Data shows that the firm bought 6,901 ETH worth $28.44 million and then another 10,000 ETH worth $41.21 million via its ETHA Ethereum ETF. The combined inflows illustrate a dual asset approach between the two largest digital assets.

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