BlackRock launches a Bitcoin ETF in the U.S. with the BITA options strategy to generate monthly income.
The world's largest asset manager, BlackRock, has listed a new exchange-traded fund on the Nasdaq — the iShares Bitcoin Premium Income ETF (ticker: BITA). This is not just another spot bitcoin ETF, but a hybrid instrument combining direct exposure to the digital asset with active selling of covered call options.
How the BITA strategy works
The fund directly holds bitcoin, as well as shares of its own spot ETF — IBIT. The main source of income is premiums from selling call options, primarily on IBIT securities and, in some cases, on bitcoin ETP indices. According to the issuer's estimates, about 25–35% of the portfolio is involved in this strategy. The goal is to generate regular monthly income while retaining a significant portion of bitcoin's upside and reducing overall volatility.
Fees, benchmark, and custodians
The fund's fee is set at 0.65% per annum. The benchmark used is the CME CF Bitcoin Reference Rate. Custodial services are provided by Coinbase and BNY Mellon, adding institutional-level security.
Current metrics and scenarios
As of June 15, BITA's net assets amount to approximately $10.65 million, with a net asset value (NAV) per share of $53.25. There are 200,000 shares outstanding. The yield has not yet been disclosed, but BlackRock has already modeled four key scenarios for the fund's performance relative to IBIT:
- Decline in bitcoin price: option premiums partially offset losses.
- Sideways trend or moderate growth: the strategy improves the overall result.
- Sharp rise: the fund limits profit potential above the option strike price.
The issuer specifically emphasizes the risks: selling covered calls "caps" profits above the strike price, but BITA retains full exposure to declines below that level. Premiums may not cover a deep drawdown, especially given the volatility of bitcoin itself or IBIT.
My commentary
The launch of BITA is a logical step for BlackRock in the era of mature crypto markets. Institutional investors are not just seeking exposure, but instruments with predictable cash flow. However, it is worth remembering: in the first quarter of 2026, institutions reduced their positions in spot bitcoin ETFs by 17%, indicating ongoing caution. BITA is a product for conservative players willing to trade part of the upside for stable income. But in conditions of sharp bitcoin movements, this compromise may prove costly.