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BlackRock Submits Bitcoin ETF Application to Reduce Market Fluctuations and Enhance Returns for Investors

BlackRock Submits Bitcoin ETF Application to Reduce Market Fluctuations and Enhance Returns for Investors

Bitget-RWA2025/09/26 00:02
By:Coin World

- BlackRock files Bitcoin Premium Income ETF using covered-call strategy to generate yield and reduce volatility for investors. - The firm holds 756,000 BTC and 3.8M ETH, leading institutional crypto custody while reporting $14.1B in Q2 digital asset inflows. - SEC's streamlined approval process (75 days) enables faster crypto ETF launches, with altcoin products like Solana/XRP gaining traction. - BlackRock prioritizes Bitcoin/Ethereum ETFs over altcoins, contrasting competitors' XRP/Solana filings but ope

BlackRock Submits Bitcoin ETF Application to Reduce Market Fluctuations and Enhance Returns for Investors image 0

BlackRock, recognized as the globe’s top asset manager, has submitted an application for a new

Premium Income ETF, presenting it as a complementary addition to its $87 billion iShares Bitcoin Trust (IBIT). This planned fund will utilize a covered-call approach on Bitcoin futures, with the goal of providing investors with income while reducing exposure to price swings. Bloomberg’s Eric Balchunas referred to the ETF as a “33 Act spot product” and a “follow-up” to IBIT, noting its appeal for traditional finance participants interested in earning returns from Bitcoin title1 [ 1 ]. Should it receive approval, this ETF could further reinforce BlackRock’s dominance in the crypto ETF sector, which has already generated more than $260 million in yearly revenue from Bitcoin and offerings title2 [ 2 ].

This move highlights BlackRock’s expanding influence in the digital asset space. According to Arkham Intelligence’s on-chain analytics, the company holds 756,000

(valued at $85.29 billion) and 3.8 million ETH (worth $16 billion), making it the largest institutional holder of both assets title1 [ 1 ]. BlackRock’s Ethereum-focused fund recently saw $512 million in net inflows, and the firm reported $14.1 billion in digital asset inflows for Q2 2025, even though these assets account for just 1% of its total managed funds title2 [ 2 ]. The company’s tokenization projects, such as the BUIDL money market fund with assets exceeding $2 billion, illustrate its broader commitment to blockchain-driven financial innovation title1 [ 1 ].

Recent regulatory changes by the SEC have sped up the approval timeline for crypto ETFs, shortening the process from 240 days to as few as 75 days. The agency’s decision on September 18 to implement standard listing rules for commodity-based trust shares removes the need for individual reviews, allowing products that meet set standards to enter the market more quickly title6 [ 6 ]. Bloomberg’s James Seyffart described this as “the crypto ETP structure we’ve been waiting for,” and it is expected to encourage more filings for spot ETFs linked to altcoins such as

and , which have experienced prolonged regulatory holdups title6 [ 6 ]. SEC Chair Paul Atkins highlighted the importance of balancing innovation with investor safeguards, signaling a shift from the previous administration’s lengthy review process title6 [ 6 ].

BlackRock’s measured stance on altcoin ETFs stands in contrast to the broader market’s eagerness. While rivals such as ProShares and Grayscale have submitted applications for XRP and Solana ETFs,

has chosen to concentrate on Bitcoin and Ethereum, favoring assets with clear regulatory status and strong institutional interest title11 [ 11 ]. Eric Balchunas from Bloomberg pointed out that this approach leaves room for other firms to pursue opportunities in the altcoin ETF arena, with possible approvals for tokens like and gaining momentum title12 [ 12 ]. According to Polymarket, XRP has an 83% likelihood of approval in 2025, while Solana and Litecoin each show odds above 80% title12 [ 12 ].

BlackRock’s application for the Bitcoin Premium Income ETF fits within its larger strategy to bring digital assets into mainstream finance. CEO Larry Fink has consistently supported tokenization, with the company piloting blockchain-based fund shares on JPMorgan’s Kinexys platform. This new ETF, together with BlackRock’s existing products, signals a strategic shift toward income generation and greater institutional involvement, positioning the firm as a major force in the changing crypto market title1 [ 1 ]. As the SEC’s streamlined process continues to accelerate approvals, BlackRock’s initiatives may drive further advancements, broadening digital asset access for more investors.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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