The U.S. Securities and Exchange Commission (SEC) has taken a key step in the long-awaited approval process for BlackRock’s Bitcoin Premium Income ETF. This actively managed fund is designed to generate yield through the sale of call options on spot Bitcoin products—and if approved, it could become another milestone in institutional adoption of crypto.
SEC Opens Formal Proceedings – Decision Expected by Year-End
In a recent update, the SEC confirmed that it has initiated proceedings to evaluate the proposed listing of the ETF on the Nasdaq exchange under the generic commodity-based trust shares rule (Rule 5711(d)).
The agency noted that further legal and policy considerations are needed to assess the proposal. As a result, the SEC has until December 31 to:
Approve the rule change,
Deny the application, or
Extend the decision process.
Why the Delay?
The main issue is that Rule 5711(d) is designed for passively managed ETFs, while BlackRock’s ETF will be actively managed—with the ability to hold over-the-counter (OTC) options, for which there is currently no surveillance-sharing agreement in place.
Nevertheless, Nasdaq argues that the fund meets all other listing requirements and is requesting approval under the current regulatory framework.
What Will the ETF Do?
The proposed ETF would:
🔹 Invest primarily in spot Bitcoin and the iShares Bitcoin Trust (IBIT)
🔹 Generate income by selling call options on IBIT or related spot Bitcoin indices
🔹 Maintain a cash reserve to support liquidity and fund operations
This model would offer investors passive yield from crypto exposure, without needing to trade derivatives or hold Bitcoin directly.
Bitcoin Price Outlook: Market Faces Mounting Pressure
While the market waits for the SEC’s verdict, Bitcoin is hovering near $86,000, with elevated volatility. Analyst Michael van de Poppe warns that unless bulls break through $88,000, BTC could drop toward $80,000.
He also notes that this week’s macroeconomic events could trigger volatility—including a potential interest rate hike by the Bank of Japan, which may lead to broader market sell-offs.
At the same time, there are concerns about $10–20 billion in redemptions from crypto hedge funds, which could intensify year-end selling pressure on BTC.
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