BlackRock filed to register a Delaware trust company for its proposed Bitcoin Premium Income ETF. The product would sell covered call options on Bitcoin futures to generate yield, potentially offsetting potential upside from BlackRock’s spot Bitcoin ETF. US regulators signal openness to crypto investment products, with BlackRock’s iShares Bitcoin ETF surpassing $60.7 billion in inflows.

TradFi investment companies previously overlooked Bitcoin due to its lack of yield generation. However, solutions like Strategy’s convertible preferred stock offerings have emerged, leveraging Bitcoin to offer stable income. BlackRock’s proposed Bitcoin product would join a few prominent yield-generating Bitcoin products in the US market.

BlackRock is focusing on Bitcoin and Ether with its proposed product, opting out of the altcoin ETF craze for now. Potential approvals for cryptocurrency ETFs may come quicker, following the SEC’s approval of a generic listing standard. Cryptocurrencies like Litecoin, Solana, XRP, and Dogecoin are among those likely to be wrapped in ETF form next.

Read more at Cointelegraph: BlackRock Proposes Bitcoin Premium Income ETF to Complement IBIT