Bitcoin ETF · Bitcoin · Bitcoin Magazine
BlackRock Publishes New Bitcoin ETF Combining BTC Exposure With Covered Call Income
Compiled by KHAO Editorial — aggregated from 6 sources. See llms.txt for citation guidance.
✓ KHAO Verified
BlackRock has launched the iShares Bitcoin Premium Income ETF (BITA), a covered-call bitcoin fund that combines spot BTC and IBIT exposure with option-writing to generate monthly income while retaining most of bitcoin's upside potential.
Key facts
- BITA’s structure holds bitcoin and IBIT for tax-efficient growth while selling options on IBIT that qualify as Section 1256 contracts, subject to the favorable 60/40 tax treatment, 60% long-term
- BITA gains its bitcoin exposure through both direct spot BTC holdings and IBIT, the world’s largest bitcoin ETP, which has accumulated nearly $49 billion in assets since its January 2024 debut
- The fund carries a 0.65% sponsorship fee, higher than IBIT’s 0.25%, but lower than other income-generating bitcoin ETFs such as Roundhill’s YBTC and NEOS’ BTCI
- The fund was registered under the Securities Act of 1933 rather than the Investment Company Act of 1940, meaning it operates outside the regulatory framework that governs mutual funds and traditional
Summary
BlackRock today launched the iShares Bitcoin Premium Income ETF (Nasdaq: BITA), a new exchange-traded product that holds spot bitcoin and shares of the iShares Bitcoin Trust ETF (IBIT) while selling call options on a portion of those holdings to generate monthly income for investors. The fund writes call options on roughly 25% to 35% of its IBIT holdings, collecting option premiums that are distributed to investors each month. The structure preserves the bulk of bitcoin exposure, allowing participation in price appreciation while producing an income stream, a combination that BlackRock says a growing portion of its client base has requested.