iShares Bitcoin Premium Income ETF aims to generate yield through covered calls on 25%-35% of holdings
BlackRock filed a fourth amendment on June 10 to launch the iShares Bitcoin Premium Income ETF, which will trade on Nasdaq under the ticker BITA. The fund represents the asset manager’s latest move into income-generating bitcoin products, following the success of its $47 billion spot bitcoin ETF, IBIT.
BITA will hold bitcoin and shares of IBIT, generating income by selling monthly call options on 25% to 35% of its combined holdings. The strategy caps upside if bitcoin rallies sharply but provides investors with regular option premiums. BlackRock set a sponsor fee of 0.65% for the fund.
The covered-call approach mirrors existing bitcoin ETFs like YBTC and BTCI, which charge 0.95% and 0.99% respectively. BITA’s lower fee positions it competitively in the nascent income-focused bitcoin ETF segment.
The fund is already seeded and has begun purchasing bitcoin and IBIT shares, signaling imminent launch readiness. Eric Balchunas, a Bloomberg analyst, said: “My guess is this is going to launch… BlackRock is under pressure to beat Goldman Sachs to market, with Goldman’s own bitcoin fund due to go live around July 1.”
Goldman Sachs is expected to launch its own bitcoin fund near July 1, creating competitive pressure in the income-paying bitcoin ETF space. Fidelity, which operates the spot bitcoin ETF FBTC, remains a rival issuer in the broader bitcoin ETF market.
The covered-call mechanism allows BITA to distribute income to shareholders while accepting the trade-off of limited upside capture during bull markets. Investors in income-focused strategies typically prioritize steady cash flow over maximum price appreciation.
BlackRock’s move reflects growing institutional demand for yield-generating crypto products. IBIT has consistently drawn the largest inflows among U.S. spot bitcoin ETFs since its launch, establishing BlackRock as the dominant player in the category.
No exact launch date has been announced. The fourth amendment filing suggests regulatory progress, though full SEC approval status remains undisclosed.
