BlackRock filed an amendment for its iShares Bitcoin Premium Income ETF this week, setting a 0.65% sponsor fee. The fund would generate returns by selling covered calls on IBIT shares and Bitcoin ETP indexes. This puts BlackRock neck and neck with Goldman Sachs in the race to launch the first Bitcoin income ETF.
The Fee Structure
That 0.65% fee is now locked in. It's standard for income-focused ETFs but higher than BlackRock's core Bitcoin ETF. Investors will pay this annually from generated premiums.
No other changes appeared in the filing. The fee covers management and operational costs. It's not a shock—similar products charge between 0.60% and 0.75%.
How It Makes Money
The fund plans to write covered calls against its IBIT holdings. That means collecting premiums while capping potential gains. Bitcoin's volatility could make this work well. Or not.
This strategy is common in traditional markets. It's new for Bitcoin ETFs. The fund would roll these options monthly. Returns depend on market swings and premium size.
The Race to Market
Goldman Sachs filed its own Bitcoin income ETF application last month. Both firms are pushing for approval before summer ends. The SEC hasn't signaled a preference.
BlackRock's amendment is the latest move. It doesn't add new partners or change the fund's structure. Just the fee. The firm wants to move fast—this isn't the first ETF race they've won.
Regulators have 45 days to respond. A decision is expected by late July.
