ChainCatcher, citing The Block, reported that BlackRock has officially launched the iShares Bitcoin Premium Income ETF under the ticker BITA. The product is structured around both bitcoin exposure and income distribution. It holds spot bitcoin as well as shares of the iShares Bitcoin Trust, known as IBIT, while adding an options-based component designed to generate monthly income for investors.
BITA sells call options on part of its holdings
According to the report, BITA sells call options on approximately 25% to 35% of its holdings. The option premiums generated through this approach are intended to be distributed to investors on a monthly basis. This makes the fund different from a product that only holds spot bitcoin or IBIT shares, because BITA combines bitcoin exposure with a strategy aimed at producing additional income from options premiums.
BlackRock links the launch to client demand
Robert Mitchnick, BlackRock’s head of digital assets, said the launch is intended to meet demand from clients who want both exposure to bitcoin and income. Under the product’s design, investors can access bitcoin-related assets through an ETF wrapper while receiving income generated by the call-option strategy. The report said BITA seeks to preserve most of bitcoin’s upside while providing investors with an additional income stream.
BITA carries an annual fee of 0.65%, which is higher than IBIT’s 0.25% fee. The difference reflects the income-oriented structure and options strategy used by BITA. The report also said that several institutions, including Goldman Sachs, are moving forward with similar bitcoin income ETF products, showing rising demand for strategies that combine bitcoin exposure with yield.