BlackRock has submitted a registration statement to the SEC for a new Bitcoin ETF under the ticker BITA. The standout feature: a sponsor fee of just 0.65%, notably cheaper than competing covered-call Bitcoin funds YBTC (0.95%) and BTCI (0.99%). Bloomberg ETF analyst Eric Balchunas called the pricing "aggressive" in a social media post.
Structure: Physical BTC and IBIT Holdings, Monthly Call Writing
According to the filing, BITA will hold both physical Bitcoin and shares of BlackRock's own iShares Bitcoin Trust (IBIT). Its income stream comes from an options strategy: each month, the fund sells call options on a portion of its IBIT shares, collecting premiums that are then distributed as dividends. The covered-call approach caps upside in strong rallies but generates steady cash flow. The filing specifies that the strategy will be applied to 25% to 35% of the fund's assets at any given time.
Competitive Edge: Underpricing Rivals, Racing Goldman Sachs
Balchunas highlighted that BITA's 0.65% fee undercuts every existing Bitcoin covered-call fund, giving BlackRock a clear cost advantage in the income-oriented crypto ETF space. More importantly, the timing: Balchunas expects the product to launch "very soon," beating a similar Bitcoin fund from Goldman Sachs that is projected to debut around July 1.
The IBIT Behemoth: $47 Billion and Growing
BlackRock's spot Bitcoin ETF, IBIT, now manages $47 billion in assets, dominating the U.S. spot Bitcoin ETF market by both inflows and trading volume. Over recent months, IBIT and Fidelity's FBTC have accounted for virtually all daily capital flows, leaving smaller issuers with negligible market share. Many analysts describe the landscape as a two-player race between BlackRock and Fidelity.
Ready for Liftoff: Seed Capital Already Deployed
The SEC filing reveals that seed capital has been allocated and purchases of both Bitcoin and IBIT shares have commenced, indicating the fund is nearly operational. Once the SEC gives the green light, BITA can begin trading almost immediately. Industry observers view this as a milestone in transforming Bitcoin from a pure price-appreciation asset into a mainstream instrument capable of generating regular income.