CoinDesk
BlackRock has filed its fourth and likely final SEC amendment for the iShares Bitcoin Premium Income ETF, set to trade on Nasdaq under the ticker BITA at a 0.65% sponsor fee — undercutting the two largest covered-call bitcoin funds, YBTC and BTCI, which charge 0.95% and 0.99% respectively. Bloomberg analyst Eric Balchunas called the filing probably final and expects a launch very soon.
Why it matters
BITA generates income by holding bitcoin and shares of IBIT, BlackRock's $47 billion spot bitcoin ETF, then selling call options on 25% to 35% of those holdings each month. Investors collect the option premiums as income in exchange for capping their upside on a sharp bitcoin rally — a classic covered-call structure now applied to the world's largest spot BTC product. The filing shows the fund is already seeded and has begun buying bitcoin and IBIT shares, signalling it is close to operational readiness.
Market impact
BlackRock is racing Goldman Sachs to market; Goldman's own bitcoin income fund is expected to go live around July 1. Given that IBIT and Fidelity's FBTC have already turned the US spot bitcoin ETF market into a two-firm race — with IBIT regularly absorbing the largest inflows even when rivals see redemptions — BlackRock's distribution advantage makes BITA a formidable entrant. A successful launch would mark another step in institutionalising bitcoin as a yield-generating asset for mainstream portfolios, expanding the addressable investor base well beyond pure price-appreciation buyers.
Frequently asked questions
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How does the BITA ETF generate income for investors?
BITA holds bitcoin and shares of BlackRock's IBIT ETF, then sells call options on 25% to 35% of those holdings each month. The premiums collected from selling those options are passed to investors as income, in exchange for capping upside on a sharp bitcoin rally.
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Why is BlackRock rushing to launch BITA before July 1?
Goldman Sachs is expected to launch its own bitcoin income fund around July 1, and BlackRock is racing to establish first-mover advantage in the covered-call bitcoin ETF category before a major rival enters the market.
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How does BITA's 0.65% fee compare to existing covered-call bitcoin ETFs?
BITA's 0.65% sponsor fee undercuts the two largest covered-call bitcoin funds: YBTC at 0.95% and BTCI at 0.99%, according to Bloomberg analyst Eric Balchunas, giving BlackRock a meaningful cost advantage at launch.
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