BlackRock moves deeper into Bitcoin ETFs as strong early inflows clash with sharp outflows and weaker BTC prices.

BlackRock has taken another step in expanding its crypto ETF lineup. A new filing shows growing interest in income-based Bitcoin products, even as market flows remain mixed. Recent ETF movements and Bitcoin price swings show both demand and caution across the market.

BlackRock Expands Crypto ETF Lineup With Bitcoin Options Fund

American investment company BlackRock has filed an S-1 registration for its upcoming iShares Bitcoin Premium Income ETF. Submitted on January 23, 2026, the filing outlines a strategy to track Bitcoin price performance while generating income through options activity.

According to Eric Balchunas, a senior ETF analyst at Bloomberg, the fund plans to sell call options mainly on shares of IBIT. Options may also be written on certain exchange-traded product indices at times. Income from these options would be distributed to investors, adding a yield-focused layer to Bitcoin exposure.

BlackRock just dropped the official S-1 for it’s upcoming iShares Bitcoin Premium Income ETF.. no fee or ticker yet. The strategy is to “track performance of the price of bitcoin while providing premium income through an actively managed strategy of writing (selling) call options… pic.twitter.com/CZDahm4mNj

— Eric Balchunas (@EricBalchunas) January 26, 2026

BlackRock’s filing comes after solid results from its spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT). The fund now holds roughly $69.85 billion in assets, placing it at the top of the US Bitcoin ETF market.

Alongside BlackRock’s Ethereum ETF, the products have raised more than $260 million in revenue in less than two years since launch.

Meanwhile, Bitcoin ETFs built around option income are already trading in the US market. Below are products that use call options to produce cash payouts: 

Roundhill Bitcoin Covered Call Strategy ETF (YBTC).
Amplify Bitcoin Max Income Covered Call ETF (BAGY).
NEOS Bitcoin High Income ETF (BTCI).

While these structures can offer steady income, they often trail the market during strong price rallies.

Strong Bitcoin ETF Inflows Clash With Weekly Outflows

Investor demand for US spot Bitcoin ETFs surged at the start of 2026, setting a fast pace as fresh capital flowed into the market. More than $1.2 billion flowed into these funds over two trading days, suggesting fresh investor interest.

Eric Balchunas said continued buying activity could drive total inflows close to $150 billion by the end of the year. The analyst noted that Bitcoin ETFs started 2026 with stronger demand than in previous periods.

The spot bitcoin ETFs are coming into 2026 like a lion, +$1.2 in flows in first two days of year w/ everyone eating. That’s a $150b/yr pace. Told ya’ll if they can take in $22b when it’s raining, imagine when the sun is shining. pic.twitter.com/YdRaLN0Op7

— Eric Balchunas (@EricBalchunas) January 6, 2026

However, the fund flows have shown uneven movements. Spot Bitcoin ETFs recorded $1.32 billion in net outflows last week. One trading session alone accounted for $708.7 million in withdrawals, placing it among the largest daily pullbacks since these products entered the market.

On the other hand, IBIT led daily outflows with $22.35 million, even as it continues to lead the market by size. Fidelity’s FBTC also posted massive outflows with $9.76 million leaving the fund. Grayscale’s GBTC saw flat daily flows but remains deeply negative over time.

Image Source: TradingView

At press time, BTC trades near $87,700 after a modest move higher. The OG coin recently fell to a five-week low near $86,000, wiping out early 2026 gains. Current price levels place the asset 30% below its October peak.

The post New BlackRock Filing Signals Shift Toward Bitcoin Yield Strategies appeared first on Live Bitcoin News.

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Filed under: Bitcoin - @ January 27, 2026 3:30 am