BlackRock, Binance, and Bitwise Launch Bitcoin Yield Engine via Covered Calls

Key Facts

1BlackRock, Binance, Bitwise, and Lombard have adopted covered-call strategies to generate Bitcoin yield using option premiums.

2The LBTC product targets a 2.5% net APY in BTC terms, with Bitwise managing the strategy and variable returns.

In a move reflecting the growing convergence between traditional finance and digital assets, BlackRock, Binance, Bitwise, and Lombard have adopted covered-call strategies to generate yield on Bitcoin holdings. According to reports, this partnership aims to provide institutional and retail investors with a structured way to earn income from their crypto assets beyond simple price appreciation. The initiative marks a significant step in increasing the utility and market depth of Bitcoin through sophisticated financial engineering.

The resulting product, known as LBTC, targets a net annual percentage yield (APY) of 2.5% in BTC terms, with Bitwise managing the strategy and its variable returns. Per market data, this collaboration brings together the world's largest asset manager, BlackRock, and the leading crypto exchange, Binance, to utilize option premiums as a consistent revenue stream for Bitcoin holders.

Regarding market performance, BlackRock (BLK) shares closed at $1090.27 on September 21, 2026, after trading within a daily range of $1064.9 to $1091.18. Investors should monitor the upcoming Fed Interest Rate Decision scheduled for later this week, as central bank policy remains a primary catalyst for volatility across both equity and cryptocurrency markets.