- The Bitcoin price gives a decisive breakdown below the support trendline of an inverted flag pattern.
- BlackRock has submitted an S-1 filing to the US SEC for the iShares Bitcoin Premium Income ETF, dated January 23, 2026.
- BTC fear and greed index at 20% shows extreme fear months market participants.
The pioneer cryptocurrency Bitcoin jumped 2% during Monday’s U.S. market hours to trade at $88,311. Following the weekend sell-off this jump may act as a relief rally for the majority of major cryptocurrencies. However, the BTC price gained additional momentum as world’s largest asset manager, BlackRock, filed for a new iShares Bitcoin Premium Income ETF, offering added yield generating opportunity. Will the news bolster BTC price for $100,000 breakout?
BlackRock Introduces Covered-Call Bitcoin Strategy
BlackRock recently statement with the US Securities and Exchange Commission for a new product called the Tip The filing, which is dated January 23, 2026, is a signal of the asset manager’s expansion into more sophisticated cryptocurrency-linked offerings outside of its established spot product.
The Bitcoin Trust, iShares Bitcoin Trust (ticker: IBIT), which debuted in early 2024, is a direct spot Bitcoin ETF. It buys and holds real bitcoin, whose share price is aimed at keeping pace with the value of the cryptocurrency as closely as possible. In turn, investors gain exposure to the price movements of Bitcoin without having to manage their own wallets, keys or exchanges. This structure keeps the approach simple and passive with fairly low levels of operational complexity and expense ratios centred around accuracy of tracking.
The proposed Premium Income ETF takes another path. It aims to be long in bitcoin (probably through stocks of the current IBIT trust), but is actively using a covered call options approach. By selling-out-of-the-money call options based on its exposure to Bitcoin, the fund receives premiums paid by the respective buyers of the out-of-the-money call options. These premiums are translated into periodic income distributions to the shareholders, which add a yield component on top of any capital appreciation from rising Bitcoin prices.
This option overlay presents trade-offs. In flat or moderately rising markets, the premiums collected may improve overall returns over a pure spot holding. However, during strong rallies in Bitcoin, the sold calls could be a way to cap upside potential in case the price rises above the strike levels and the fund has to deliver gains above those levels. The active management of options also entails increased complexity, potentially increased trading costs and probably expense ratio than IBIT’s straightforward setup.
The filing still is subject to review and approval of the SEC before any launch can occur. If it’s cleared, it would join a small but increasing category of income-oriented crypto vehicles that combine direct asset exposure with the derivative-based generation of yield.
Bitcoin Price Eyes $80,000 After This Support Breakdown
The daily chart analysis of Bitcoin shows a key breakdown front the support trendline of a bearish continuation pattern called inverted flag. On 20th January, the coin price gave a decisive breakdown below the pattern’s bottom trendline at $90,000. The chart setup is displayed with a long downsloping pole showcasing the prevailing downtrend followed by a temporary upswing within flag structure.
With sustained selling, the BTC price could extend its support with $84,000 breakdown, followed by a retest to $80,000.
On the contrary, the coin price could challenge the overhead resistance of $90,000. This level currently coinciding with the 20-and-50 day exponential moving average, creates an additional barrier against buyers.
Thus, a potential breakout will fail the previous flag breakdown and accelerate the buying pressure.
Also Read: Stablecoins Surge: $312B Market, Neobanks Fuel Real-World Use
Source: https://www.cryptonewsz.com/blackrock-bitcoin-premium-income-etf/
