BlackRock Files for iShares Bitcoin Premium Income ETF, Set to Pay Income from Options
BlackRock has filed for the iShares Bitcoin Premium Income ETF (ticker: BITA) on Nasdaq, aiming to generate income for investors by selling call options on its own $47 billion spot bitcoin ETF, IBIT. The fund holds bitcoin and IBIT shares, then sells call options on 25% to 35% of its holdings monthly, collecting premiums that are distributed as income. This strategy caps upside potential during bitcoin rallies in exchange for steady payments. BlackRock set a sponsor fee of 0.65%, undercutting rival covered-call bitcoin ETFs YBTC (0.95%) and BTCI (0.99%). Bloomberg analyst Eric Balchunas expects the fund to launch soon, possibly before Goldman Sachs' competing bitcoin fund, which is due around July 1. The filing indicates the fund is already seeded and has started buying assets, signaling readiness. This move further integrates bitcoin into mainstream income-generating products, leveraging BlackRock's strong distribution network.
Key facts
- BlackRock files for BITA ETF, generating income by selling call options on IBIT shares.
- Fund sells call options on 25%-35% of holdings monthly, collecting premiums for investors.
- Sponsor fee set at 0.65%, lower than competing covered-call bitcoin ETFs YBTC and BTCI.
- Expected launch soon to beat Goldman Sachs' bitcoin fund due around July 1.
- Fund already seeded and buying assets, indicating near readiness.