BlackRock’s $12.5T Bitcoin ETF Filing Shakes Markets

BlackRock’s $12.5T Bitcoin ETF Filing Shakes Markets — Is Approval Imminent?

BlackRock, the world’s largest asset manager, has filed an application for a new Bitcoin Premium Income ETF, a move that could significantly expand institutional exposure to digital assets.

The $12.5 trillion firm is seeking approval for what would be its latest entry into cryptocurrency products, adding to its growing dominance in the exchange-traded fund market.

New BlackRock ETF Seeks Yield on Bitcoin Through Covered-Call Strategy

The proposed Bitcoin Premium Income ETF is designed as a covered-call strategy, offering yield on Bitcoin holdings.

Bloomberg analyst Eric Balchunas noted that BlackRock has registered the name iShares Bitcoin Premium ETF and described it as a “33 Act spot product,” positioned as a sequel to the firm’s $87 billion iShares Bitcoin Trust (IBIT).

If approved, the new product could attract traditional finance investors seeking income from Bitcoin while further cementing BlackRock’s position as the leading provider of crypto ETFs.

The filing comes at a time when BlackRock’s digital asset business is rapidly scaling.

According to data shared by the Onchain Foundation, the company’s Bitcoin and Ether ETFs are generating more than $260 million in annual revenue, with $218 million from Bitcoin products and $42 million from Ethereum.

Analysts say the success of these funds signals that crypto ETFs are no longer an experiment but a meaningful profit center for the asset manager.

On-chain data from Arkham Intelligence shows that BlackRock is now the largest institutional custodian of both Bitcoin and Ethereum. The firm holds more than 756,000 BTC valued at $85.29 billion, alongside 3.8 million ETH worth nearly $16 billion.

Including smaller crypto holdings, BlackRock’s total digital asset custody now exceeds $101 billion. The firm is also known for making large purchases during market downturns, a pattern that has helped strengthen its position as a key player in crypto markets.

BlackRock’s expansion into digital assets continues to draw inflows. Its Ethereum-linked fund recorded $512 million in net capital inflows last week, according to Farside Investors. In its second-quarter earnings report, BlackRock disclosed $14.1 billion in digital asset inflows, making the category one of its fastest-growing product lines despite representing only 1% of total assets under management.

Crypto ETFs generated $40 million in base fees and securities lending revenue in the same quarter.

The firm is also exploring tokenization, a process of creating blockchain-based versions of traditional assets. Earlier this year, BlackRock launched its tokenized money market fund BUIDL, which has grown to more than $2 billion in assets.

Chief Executive Officer Larry Fink has repeatedly said he believes every financial asset can ultimately be tokenized, and BlackRock has tested tokenized fund shares on JPMorgan’s Onyx blockchain, now known as Kinexys.

The Bitcoin Premium Income ETF filing adds to this momentum, placing pressure on regulators as institutional adoption of cryptocurrency continues to accelerate.

Crypto ETF Market Set to Broaden Under SEC’s Faster Approval Process

The SEC has approved new listing rules that could accelerate the launch of crypto exchange-traded funds beyond Bitcoin and Ether.

On September 18, the commission voted to allow Nasdaq, Cboe BZX, and NYSE Arca to adopt generic listing standards for commodity-based trust shares.

The change replaces the lengthy case-by-case review process that previously delayed applications, often for months or years. Asset managers will now be able to bring products to market in as little as 75 days, compared with up to 240 under the old system.

Analysts say the first beneficiaries are likely to be spot ETFs tied to Solana and XRP, both of which have awaited approval for more than a year. Bloomberg’s James Seyffart called the new framework “the crypto ETP structure we’ve been waiting for,” predicting a surge of filings.

SEC Chair Paul Atkins said the shift balances innovation with investor protection and reflects the Trump administration’s broader embrace of digital assets.

The move contrasts with the Biden-era approach, which saw years of delays and repeated denials, including multiple rejections of Bitcoin ETF proposals before eventual approval in January 2024.

Under the new framework, eligibility may extend to any cryptocurrency with at least six months of futures trading on the Coinbase Derivatives Exchange, according to Bloomberg’s Eric Balchunas.

That could open the door for more than a dozen altcoin ETFs, potentially expanding investor access and further embedding digital assets into mainstream markets.

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