- Nasdaq has filed with the SEC to list the BlackRock iShares Bitcoin Premium Income ETF under the commodity-based trust rule.
- The ETF will generate income through covered call strategies while holding Bitcoin, IBIT, cash, and exchange-listed FLEX options.
- BlackRock positioned the ETF as an income-focused alternative to IBIT, expanding its digital asset product lineup while aiming to reduce volatility.
Nasdaq has formally submitted a proposal to the U.S. Securities and Exchange Commission to list and trade the BlackRock iShares Bitcoin Premium Income ETF. The application was filed under the commodity-based trust rule on September 30. The SEC has acknowledged the submission and noted that the ETF meets the requirements under its general listing standards.
The filing follows the registration of the iShares Bitcoin Premium Income ETF in Delaware last week. Market analysts describe the move as an expansion of BlackRock’s digital asset suite. Bloomberg ETF analyst Eric Balchunas called the product a sequel to BlackRock’s existing iShares Bitcoin Trust, also known as IBIT.
Focus on Yield Generation
Unlike IBIT, which tracks the spot price of Bitcoin, the new ETF is structured to provide income. The fund aims to generate yield through covered call strategies. According to the filing, the trust will primarily invest in spot Bitcoin and IBIT, along with cash reserves. It will also sell call options on IBIT or indices that track spot Bitcoin exchange-traded products.
The ETF may include positions in exchange-listed FLEX options to manage exposure and enhance yield. BlackRock emphasized in the filing that the objective is to deliver income while seeking to mitigate volatility for investors. The strategies focus on balancing direct exposure to Bitcoin with option-based income generation.
Regulatory Review Underway
The SEC is currently seeking public comments on the proposed rule change that would allow Nasdaq to proceed with the listing. The review process is expected to determine the timeline for approval. BlackRock confirmed that the ETF will operate in compliance with the generic listing standards that will apply from the first quarter of 2026.
At the time of writing, Bitcoin maintained a trading range above $114,000, with daily lows at $112,740 and highs at $114,746. While Bitcoin has remained firm, other cryptocurrencies have experienced selling pressure. Market conditions may play a role in shaping investor demand for the income-focused ETF.
