Bloomberg ETF analyst Eric Balchunas revealed on X that BlackRock submitted a fourth amendment for the iShares Bitcoin Premium Income ETF, set to trade on Nasdaq under the ticker BITA. The fund's 0.65% sponsor fee sits below the two largest covered-call bitcoin ETFs: YBTC at 0.95% and BTCI at 0.99%. Balchunas expects a swift launch, noting BlackRock faces pressure to beat Goldman Sachs' bitcoin fund, slated to go live around July 1.
Options Strategy: Selling Calls for Monthly Payouts
BITA generates income by holding bitcoin and shares of BlackRock's $47 billion spot bitcoin ETF, IBIT, then selling call options on IBIT each month. The premiums collected from these options become the income distributed to investors. However, writing calls caps upside if bitcoin rallies sharply. The fund plans to cover only 25% to 35% of its net asset value at a time, a smaller proportion than rivals like YBTC (which often writes calls on a higher percentage).
This covered-call approach is common in traditional equities but new for bitcoin ETFs. By capping the option exposure, BITA aims to offer steady cash flow without fully sacrificing bull-market gains—an attempt to bridge the gap between yield-seeking retirees and crypto volatility.
Fee War: BlackRock's Scale Drives Down Costs
At 0.65%, BITA's fee is roughly one-third cheaper than the next lowest competitor. BlackRock's distribution dominance—IBIT already consistently draws the largest inflows among spot bitcoin ETFs—lets it absorb lower fees while rivals struggle to match. As of the filing, IBIT and Fidelity's FBTC have turned the U.S. spot bitcoin ETF market into a two-player race, with smaller issuers contributing little to daily flows.
The fund has already received seed capital and started purchasing bitcoin and IBIT shares—a sign of operational readiness. Once approved, it will compete head-on with Goldman Sachs' upcoming bitcoin fund, whose fee structure remains undisclosed. Balchunas noted BlackRock's move represents a broader push to turn bitcoin from a pure price-play into an income-generating instrument for mainstream portfolios.