BlackRock filed an S-1 with the SEC on January 23rd for the iShares Bitcoin Premium Income ETF, which will sell call options on IBIT shares to generate monthly income. This puts them in direct competition with NEOS's BTCI fund, which launched in October 2024 and has already accumulated $1.09 billion in assets.
The mechanics are straightforward: the fund holds Bitcoin and IBIT shares, then writes call options against that exposure. Investors collect the premiums as income but cap their upside if Bitcoin rallies hard. BTCI currently distributes around 27% annually, though 95% of that is classified as return of capital. BlackRock's version will likely have lower fees and deeper liquidity given IBIT's $69.7 billion in AUM.
What stands out is the timing—covered call Bitcoin products are gaining traction as investors rotate toward yield strategies in a post-rate-cut environment.
