TechFlow reported on June 17 that 10x Research has challenged the strategy design behind BlackRock’s Bitcoin income-enhanced exchange-traded fund, BITA. According to the firm, BITA seeks to generate income by selling call options, but that structure can leave investors underperforming spot Bitcoin across many market conditions and failing to achieve the absolute returns they expect.
BITA is presented as an income-enhanced ETF built around Bitcoin exposure rather than a simple product that only follows Bitcoin’s price. In the framework described by 10x Research, the fund collects option premiums by selling call options. The core trade-off is clear: investors receive income from those premiums, but they also give up part of the upside when Bitcoin continues to rise.
Fixed Monthly Call Selling Draws Criticism
10x Research said BITA follows a fixed rule-based approach, selling call options every month. The firm argued that this mechanical execution forces investors into an unfavorable balance between yield and upside regardless of whether Bitcoin is rising, moving sideways, or declining. In a rising market, the sold calls cap participation in further gains; in a flat or falling market, the premium income does not automatically deliver the desired absolute return.
The firm’s criticism is therefore aimed not only at call selling as a concept, but also at the rigidity of the execution model. A fixed monthly strategy applies the same structure across very different market environments. Compared with holding spot Bitcoin directly, BITA’s return profile depends heavily on whether collected premiums can compensate for the upside that investors give away.
Timing and Conditional Execution
10x Research said its own framework emphasizes “timing” and “conditional execution,” meaning that option premium should be harvested only when market conditions are favorable, rather than through continuous call selling without regard to the broader environment. The firm also stated that Bitcoin’s high volatility mainly comes from information asymmetry among market participants and from a highly marketing-driven market setting.
Many investors have tried for years to capture Bitcoin volatility through systematic strategies, according to 10x Research, but most have not succeeded. Its critique of BITA centers on whether an income-enhancement design based on regular call selling is properly matched to Bitcoin’s volatility profile and whether such a structure can compete with simply holding spot Bitcoin over the long term.