BlackRock is launching a new Bitcoin yield ETF using a covered call options strategy
According to ChainCatcher, Bloomberg ETF analyst Eric Balchunas has revealed that BlackRock has applied to launch a new product called the iShares Bitcoin Premium ETF, which is a fund utilizing a covered call options strategy.
Unlike traditional spot ETFs that passively track the price of bitcoin, this product will generate premium income by selling covered call options while holding bitcoin or related instruments, and distribute these earnings as income to investors, thereby converting bitcoin's volatility into investment returns. Balchunas pointed out that this move could impact competitors who are already developing yield-based bitcoin products.
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