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BlackRock has filed a new amendment for a bitcoin fund structured to produce yield through active covered call strategies, with a Bloomberg analyst signaling a launch is expected soon.
The fund would write covered calls on shares of IBIT — BlackRock's existing bitcoin exchange-traded product — and on bitcoin ETP indices, generating income by selling options against those positions.
The filing extends the world's largest asset manager's push to broaden the appeal of bitcoin to institutional investors who require income alongside capital exposure.
How Covered Calls Generate Yield on Bitcoin A covered call strategy works by holding an underlying asset and selling call options against it.
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