BlackRock Moves Closer to Launching Income-Focused Bitcoin ETF

BlackRock is close to launching the iShares Bitcoin Premium Income ETF, a new bitcoin-linked fund that would trade on Nasdaq under the ticker BITA. The asset manager filed a fourth amendment for the product on Tuesday, according to the source, indicating the fund is moving toward launch.

The development matters because it would add another mainstream wrapper for bitcoin exposure, this time focused on income rather than only price appreciation. For investors comparing crypto ETF products, BlackRock’s proposed 0.65% sponsor fee is a key feature, coming in below the fees charged by the two largest covered-call bitcoin ETFs cited in the report.

BITA is designed to generate income through options. The fund would hold bitcoin and shares of BlackRock’s iShares Bitcoin Trust, IBIT, then sell call options on a portion of those IBIT shares each month. The premiums collected from selling those options are intended to support investor payouts.

That structure also comes with a tradeoff. Selling call options can limit gains if bitcoin rises sharply, because the strategy exchanges some potential upside for recurring premium income. The fund plans to write calls on 25% to 35% of its value at a time, according to the filing details cited by CoinDesk.

BlackRock already has a major position in the U.S. spot bitcoin ETF market through IBIT, which the report described as a flagship product in the sector. CoinDesk also noted that the filing shows BITA has been seeded and has started buying bitcoin and IBIT shares, a sign that the product is close to being ready.