Crypto news

Asset management giant BlackRock has listed a new instrument on the Nasdaq exchange — the iShares Bitcoin Premium Income ETF (BITA). This is not just another bitcoin ETF, but a hybrid product that combines direct exposure to the spot price of the first cryptocurrency with active selling of covered call options.

BITA tracks the performance of spot bitcoin while simultaneously generating premium income through an options strategy. The fund is described as "a tool for monthly income that reflects a significant portion of bitcoin's growth with potentially lower volatility." Essentially, it is an attempt to create a more predictable and income-generating product in a volatile market.

To implement the strategy, the fund directly holds bitcoin and shares of BlackRock's spot ETF — IBIT. Income is generated through the active sale of call options, primarily on IBIT shares and occasionally on bitcoin ETP indices. The covered call target is approximately 25–35% of the portfolio's assets.

BITA's expense ratio is 0.65%, which is a standard level for active ETFs. The CME CF Bitcoin Reference Rate has been chosen as the benchmark. Custodians are Coinbase and BNY Mellon — two of the largest institutional digital asset custodians.

As of June 15, the fund's net assets stood at $10,649,844, with a NAV per share of $53.25. There are 200,000 shares outstanding. Performance data is not yet available, which is expected for a newly launched product.

BlackRock has outlined four basic scenarios for BITA relative to IBIT. If the price of bitcoin declines, options income may partially offset losses. In a sideways or moderately rising market, it could improve results. In the event of a sharp rise in bitcoin, the fund may limit upside potential. The company specifically warns: selling covered call options on IBIT shares caps profits above the strike price while retaining downside exposure below that level.

It is worth noting that institutional investors filing 13F forms reduced their positions in U.S. spot bitcoin ETFs by 17% in the first quarter of 2026. The launch of BITA may be a response to this trend — an attempt to offer institutions more sophisticated and potentially income-generating tools for working with bitcoin.

My comment: The launch of BITA is a logical step for BlackRock in the evolution of crypto ETFs. The product is aimed at conservative investors who want exposure to bitcoin but fear its high volatility. However, it is important to understand: the covered call strategy works effectively only in markets with moderate growth or sideways movement. In the event of a sharp bitcoin rally, BITA investors may significantly underperform compared to direct asset ownership. This is not a "sweet spot," but a compromise that requires an understanding of market cycles.