Exchange joins BlackRock in offering systematic options strategy to generate income without selling
Binance has introduced BTC Yield, a covered-call product that lets bitcoin holders earn extra returns on their holdings without liquidating any positions. The product deposits user bitcoin as collateral, systematically sells BTC call options, and distributes collected premiums back to participants.
BTC Yield is available inside Binance Earn and designed exclusively for users who already hold bitcoin. Participants deposit BTC and receive an internal position called BTCY that tracks their share in the strategy. All holdings remain denominated in bitcoin; the product cannot be funded with stablecoins or other assets.
Binance takes 15% of gross option premiums before calculating user yield. A portion of collected premiums is converted to bitcoin and distributed to users’ spot accounts every Friday. The remaining premiums stay inside the strategy and gradually increase the value of each BTCY unit.
Shunyet Jan, head of exchange and trading at Binance, framed the product as a bridge between traditional finance and retail crypto users. “Covered call strategies have long been used in traditional finance, but they can be complex for retail users to access directly. With BTC Yield, we are simplifying that experience for Bitcoin holders who want income potential without actively trading the market,” Jan said.
The move aligns Binance with BlackRock, which recently introduced a Bitcoin income ETF that also employs a covered-call strategy. Both products target investors seeking yield generation through systematic options sales rather than price appreciation alone.
In a covered-call structure, the seller receives premium income by agreeing to sell an asset at a predetermined price if the buyer exercises the contract. For bitcoin holders, this means ceding upside above the strike price in exchange for immediate income. The trade-off appeals to investors with medium-term price expectations or those prioritizing cash flow over maximum capital gains.
Binance did not specify minimum deposit amounts, maximum capacity limits, or historical performance benchmarks for BTC Yield. The exchange also did not disclose expected yield ranges or risk metrics associated with the product.
