BlackRock, the large asset management firm, submitted a registration for the Delaware Trust Company with the aim of launching a Bitcoin Premium Revenue ETF. This move highlights their interest in expanding Bitcoin-related offerings.
Bloomberg’s ETF analyst, Eric Bulknath, mentioned that BlackRock’s new product would involve selling call options backed by Bitcoin futures to gather premiums and generate income. However, this approach could potentially limit the usual benefits that come from investing in Spot Bitcoin ETFs, which track the actual price of Bitcoin (BTC).
“This strategy is designed to provide some yield on BTC. It follows the ’33 ACT Spot product, 87B $IBIT.”
Typically, registering a trust in Delaware means the ETF issuer is preparing to file either a formal S-1 registration statement or a 19B-4 with the Securities and Exchange Commission to start the official process.
U.S. regulators, particularly the SEC, have shown increasing willingness to consider a variety of cryptocurrency investment products as part of broader efforts to establish the U.S. as the “crypto capital of the world,” a vision boosted by former President Donald Trump.
This new product from BlackRock complements the existing iShares Bitcoin ETF (IBIT), which has attracted over $60.7 billion since its debut in January 2024, making it the largest of its kind, followed by the Origin Bitcoin Fund (FBTC) with $12.3 billion.
Bitcoin yield products are gradually emerging
One reason many traditional financial investment companies are hesitant about Bitcoin is that it’s not typically seen as a yield-generating asset. Yet, it seems that new solutions are being explored, leveraging 639,835 Bitcoin to offer investors consistent returns, including options like STRK, part of Strategy’s convertible priority offerings.
If approved, BlackRock’s product would join several other noteworthy yield-generating Bitcoin products available in the U.S.
BlackRock likely to steer away from Altcoin ETFs, analysts predict
Baltuna commented that as various altcoins are poised to be submitted for ETF consideration, it appears BlackRock is focusing exclusively on Bitcoin and Ether (ETH).
“This opens up opportunities for racing among these other coins,” he stated.
Given the recent changes, potential approvals for new applications might come more swiftly, as the SEC has recently approved a broader listing standard, eliminating the need for each application to undergo separate evaluation.
Among the cryptocurrencies that might soon be offered in ETF form are Litecoin (LTC), Solana (SOL), XRP (XRP), and Dogecoin (Doge).
