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BlackRock has moved to launch a Bitcoin income fund built on a covered-call strategy, marking the asset management giant's latest structured product targeting $BTC exposure.
The fund is designed to generate yield by selling call options against a Bitcoin position — a mechanism distinct from simply holding spot Bitcoin and waiting for price appreciation.
What a Covered-Call Fund Actually Does A covered-call strategy works by holding an underlying asset and simultaneously selling the right for a counterparty to buy that asset at a fixed price by a set date.
The seller — in this case, the fund — collects the option premium upfront. If Bitcoin stays below the strike price, the fund keeps the premium and the position rolls forward.
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