Bitcoin ETF · Bitcoin · Bitcoin Magazine
BlackRock Executive Calls Bitcoin “Too Big to Ignore”, Discusses New Bitcoin Premium Income ETF
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BlackRock's new BITA ETF uses a covered-call strategy on its spot Bitcoin ETF holdings to generate monthly income.
Key facts
- If Bitcoin gains 100% in a year, BITA holders would see roughly 70%in price appreciation plus 15% in income, totaling approximately 85%
- If Bitcoin rises 10%in a year and the fund is selling roughly 30%of that upside through options, the fund’s price return would be approximately 7 percent
- BITA holds exposure to Bitcoin through IBIT and sells call options at the money on approximately 25 to 35% of the portfolio
- Jay Jacobs, BlackRock’s US Head of Equity ETFs, spoke to CoinTelegraph to discuss the launch of the iShares Bitcoin Premium Income ETF, ticker BITA, which began trading this week
Summary
BlackRock, the world’s largest asset manager with more than $10 trillion under management, has launched a new Bitcoin exchange-traded product designed to generate monthly income for investors, a move the firm’s top ETF executive says is aimed at pulling in a wave of traditional investors who have kept their distance from the asset due to its volatility. Jay Jacobs, BlackRock’s US Head of Equity ETFs, spoke to CoinTelegraph to discuss the launch of the iShares Bitcoin Premium Income ETF, ticker BITA, which began trading this week. “You can think about this as a hybrid strategy for investors,” Jacobs said. BITA holds exposure to Bitcoin through IBIT and sells call options at the money on approximately 25 to 35% of the portfolio.