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BlackRock has launched a new Bitcoin ETF designed to pay shareholders monthly income, CoinDesk reported.
The product wraps $BTC exposure inside a distribution structure — a combination that is new enough to warrant scrutiny before any celebration.
What "Monthly Income" Actually Means Here An ETF that holds Bitcoin and also generates a regular cash distribution is not doing magic. Bitcoin itself pays no dividend, no coupon, no yield.
For a fund to produce monthly income from a non-yielding asset, something has to create that cash — most commonly an options overlay, where the fund sells call options on its holdings and passes the collected premiums to investors.
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