BlackRock has submitted an updated regulatory filing for its iShares Bitcoin Premium Income ETF, moving the product closer to launch under the ticker BITA. The fund aims to generate income by selling call options on Bitcoin-linked holdings while charging a 0.65% sponsor fee.
The world's largest asset manager filed the amendment with the Securities and Exchange Commission on June 10. The prospectus sets an annualized fee of 0.65% and outlines a strategy of writing call options on 25% to 35% of the fund's net asset value.
An initial seed investor purchased 198,000 shares at $50 each on June 1, providing $9.9 million. On June 9 the trust acquired 109.9630217 Bitcoin and 90,901 shares of BlackRock's iShares Bitcoin Trust, then sold 856 options contracts.
The filing signals a near-term launch and intensifies competition with Goldman Sachs, whose Bitcoin Premium Income ETF is expected to become effective near the beginning of July. Analyst Eric Balchunas noted that the 0.65% fee undercuts the two largest existing covered-call Bitcoin ETFs.
