BlackRock filed a Form 8-A with the U.S. Securities and Exchange Commission for its iShares Bitcoin Premium Income ETF, set to trade under ticker BITA. Bloomberg Senior ETF Analyst Eric Balchunas said the filing typically means a launch in one week, estimating BITA would go live next Thursday. The fund is designed to provide investors with bitcoin exposure while generating income through a covered-call strategy that sells options on BlackRock's existing spot bitcoin ETF, IBIT, and distributes the collected premiums as yield. BITA's shares are registered for listing on the Nasdaq Stock Market, with the fund's mechanics detailed in regulatory filings. The product enters a market where Goldman Sachs filed for a similar bitcoin premium income ETF in April, with an expected launch around July 1, creating a competitive race between two major financial institutions in the emerging covered-call crypto ETF category.
BITA Employs Covered-Call Strategy on BlackRock's IBIT
BITA is actively managed and will sell call options primarily on BlackRock's existing spot bitcoin ETF, IBIT, then pass the collected option premiums back to investors as yield. The fund buys bitcoin exposure and writes options contracts on IBIT, with those contracts generating premiums that become income for shareholders. As of June 9, the trust had purchased approximately 110 bitcoin and 90,901 IBIT shares, while also writing 856 option contracts. Jane Street Capital and Virtu Financial Singapore are named as the fund's bitcoin trading counterparties.
BlackRock Sets 0.65% Fee and Seeds Fund with $9.9 Million
BlackRock confirmed a sponsor fee of 0.65% in its fourth amended S-1 registration. That rate comes in below competing covered-call bitcoin ETFs currently on the market. BlackRock seeded the fund with $9.9 million, spread across 198,000 shares priced at $50 each. At the time of the last filing, net assets were approximately $49.97 per share.
Goldman Sachs Files Competing Bitcoin Premium Income ETF
Goldman Sachs filed for its own bitcoin premium income ETF in April. Balchunas previously said that Goldman's version is expected to launch around July 1. Both funds are aimed at investors who want bitcoin in a portfolio while earning income on top of any price appreciation. The options-plus-spot structure is new territory for crypto ETFs.
BITA Adds New Derivative Demand Layer to Bitcoin Markets
BlackRock's existing IBIT is the largest spot bitcoin ETF by assets under management. A covered-call bitcoin ETF introduces a new type of demand for IBIT options specifically. As BITA grows, it will need to keep writing option contracts on IBIT, which could create sustained activity in bitcoin derivatives.
FAQ
What is the covered-call strategy used by BITA?
BITA sells call options on BlackRock's spot bitcoin ETF, IBIT, to generate income for investors through option premiums. It is an actively managed approach layered on top of direct bitcoin exposure.
What fee does BITA charge compared to competitors?
BITA carries a sponsor fee of 0.65%, which is lower than competing covered-call bitcoin ETFs currently available in the market.
When did BlackRock seed the BITA fund and with how much capital?
BlackRock seeded the fund with $9.9 million, spread across 198,000 shares priced at $50 each, as disclosed in its fourth amended S-1 registration.
