BlackRock launches a Bitcoin ETF with an options strategy: a new tool for passive income
The world's largest asset manager, BlackRock, has launched a new exchange-traded fund on Nasdaq — the iShares Bitcoin Premium Income ETF (ticker: BITA). This is not just another Bitcoin ETF, but a hybrid instrument that combines direct exposure to the spot price of the first cryptocurrency with active selling of covered call options. The product has already begun trading, and its structure deserves close attention from both retail and institutional players.
The core idea of BITA is to generate monthly premium income while retaining a significant portion of Bitcoin's price appreciation. The fund directly holds both Bitcoin itself and shares of its own spot ETF — IBIT. Income is generated through the systematic sale of call options, primarily on IBIT shares, and in some cases on Bitcoin ETP indices. The target for covered calls is 25–35% of portfolio assets. This allows for regular premium income but limits upside potential in the event of a sharp price surge.
The fund's expense ratio is 0.65% — a fairly competitive rate for an ETF with an active strategy. The benchmark is the CME CF Bitcoin Reference Rate, and custodial services are handled by Coinbase and BNY Mellon. As of June 15, BITA's net assets stood at approximately $10.65 million, with a NAV per share of $53.25 and 200,000 shares outstanding. Yield has not yet been disclosed, as the product has only just launched.
BlackRock clearly outlines four scenarios for BITA's performance relative to IBIT. If Bitcoin declines, option income may partially offset losses. In a sideways or moderately rising market, it can enhance overall returns. However, in a sharp rally, the fund will cap profits, as selling covered call options "cuts off" gains above the strike price. It is important to emphasize: BITA retains full downside exposure below that level, and premiums may not cover a significant drawdown in Bitcoin or IBIT volatility.
It is worth noting that, according to data from the first quarter of 2026, institutional investors filing Form 13F reduced their positions in U.S. spot Bitcoin ETFs by 17%. Against this backdrop, the launch of BITA appears as an attempt to offer the market a more conservative, income-generating instrument that could attract those seeking stable cash flow rather than mere speculation on price growth.
Analyst's opinion: BITA is a logical step by BlackRock toward structured products. For investors who believe in Bitcoin's long-term growth but want regular income, such an ETF could be an alternative to direct purchases. However, it is crucial to understand: in a bull market with sharp rallies, this instrument will underperform pure IBIT. It is a product for sideways and moderate growth, not for hype.