BlackRock, the world’s largest asset manager, is preparing a new bitcoin exchange-traded fund, The Block reported on Jan. 26.

A filing with the U.S. Securities and Exchange Commission shows the new ETF is registered as the iShares Bitcoin Premium Income ETF. It would hold bitcoin directly while using a covered-call strategy to generate income.

Like the existing IBIT, the ETF would use spot bitcoin as its main underlying asset. It would also add an options-selling strategy to secure regular income.

The fund’s adviser would mainly sell call options based on IBIT shares and use the premiums as a source of income. In some cases, the options strategy could also be applied to indexes of other exchange-traded products that track the price of bitcoin.

A covered-call strategy aims to secure regular option premium income while giving up some upside potential in the held assets. The Block said it has been widely used in traditional finance for equity-based ETFs and is recently expanding into crypto investing.

Compared with ethereum or solana-based ETFs that can generate income through staking, the product could offer a similar income model to bitcoin holders. The Block said the new ETF’s ticker and listing schedule have not yet been decided, and the industry expects BlackRock to target institutional and conservative investors through the premium income ETF.