ChainCatcher, citing The Block, reported that BlackRock has launched the iShares Bitcoin Premium Income ETF, which will trade under the ticker BITA. The fund is structured around Bitcoin-related exposure and will hold spot Bitcoin as well as shares of BlackRock’s iShares Bitcoin Trust ETF, known as IBIT.
According to the report, BITA will use an options-based income strategy in addition to its Bitcoin exposure. The fund will sell call options on roughly 25% to 35% of its IBIT holdings, aiming to collect option premium income and distribute that income to investors. This gives the product a structure that differs from a fund holding only spot Bitcoin or a single ETF position.
BITA is set to trade on Nasdaq and will carry a sponsor fee of 0.65%. The report said the product is designed for investors who want exposure to Bitcoin while also focusing on income. With this launch, BlackRock adds a Bitcoin-linked ETF product that includes a premium income distribution mechanism tied to its IBIT holdings.