BlackRock plans to generate returns on Bitcoin investments through the "iShares Bitcoin Premium Income ETF".

PANews reported on January 27 that, according to The Block, BlackRock has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for the iShares BTC Premium Income ETF, aiming to provide yield generation capabilities for Bitcoin investments.

The fund will directly hold Bitcoin to track the spot price, while generating returns through an actively managed covered call option strategy. Its investment advisors will actively sell call options—primarily against BlackRock's own IBIT shares, and sometimes against other ETP indices that track Bitcoin—and receive the option premiums as income. If approved, this product will provide Bitcoin ETF investors with a return mechanism similar to Ethereum or SOL funds, where returns are generated through staking.