BlackRock debuted its iShares Bitcoin Premium Income ETF, known as BITA, on Nasdaq on June 16. The fund provides Bitcoin exposure through a covered call strategy designed to generate monthly income. It trades alongside the firm's larger spot Bitcoin ETF, IBIT.
The new ETF holds spot Bitcoin and shares of IBIT while selling call options on roughly 25% to 35% of its assets. This structure collects premiums to support distributions but can limit participation in sharp Bitcoin rallies.
BlackRock's U.S. head of equity ETFs, Jay Jacobs, said the product targets income-focused investors and Bitcoin holders seeking cash flow. "This is something we've had as an idea for a while," Jacobs told CoinDesk.
BITA carries a 0.65% sponsor fee and began with modest assets. It lists on Nasdaq with monthly distributions planned, following SEC approvals in early June.
The launch comes as Bitcoin trades near $66,000. Analysts note the fund aims for 15% to 25% annualized yield while capturing at least 70% of Bitcoin's upside, though results depend on market conditions.
