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BlackRock has launched a new Bitcoin ETF designed to produce regular income by running a covered call strategy on $BTC exposure, The Block reported.
The fund marks a structural departure from straightforward spot Bitcoin products, layering an options overlay onto the underlying position to generate yield for shareholders.
What the Covered Call Structure Actually Does A covered call strategy works by holding exposure to an asset — in this case Bitcoin — while simultaneously selling call options against that position.
The seller collects the option premium upfront; if $BTC stays below the strike price at expiration, the premium is pure income.
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