BlackRock Launches Bitcoin Premium ETF, Reshaping Crypto Investment
BlackRock, the world's largest asset manager, has registered the iShares Bitcoin Premium ETF. This new product, a covered-call strategy, aims to generate yield from Bitcoin, marking a significant development in institutional crypto investment.
The move comes on the heels of BlackRock's successful $87B iShares Bitcoin Trust (IBIT) and signals a deeper focus on Bitcoin and Ethereum. With over $260 million in annual revenue from its crypto ETFs, BlackRock's crypto business has grown rapidly. The firm now holds more than 756,000 BTC and 3.8M ETH, worth over $100 billion combined.
Analysts predict this could reshape the crypto ETF market, potentially leaving altcoin ETFs in limbo. BlackRock's decision to focus on Bitcoin and Ethereum, while filing for a new Bitcoin product before others, reflects its strategy to concentrate on these two cryptocurrencies. The iShares Bitcoin Premium ETF, structured as a covered-call strategy, aims to attract income-oriented investors, who are more familiar with such schemes.
The U.S. SEC's fast-track approval process for crypto ETFs, taking as little as 75 days, has facilitated BlackRock's expansion. With the iShares Bitcoin Premium ETF, BlackRock continues to lead the institutional investment in crypto, potentially reshaping the market and attracting new types of investors.
