Crypto news

Global asset manager BlackRock has launched a new fund on Nasdaq — the iShares Bitcoin Premium Income ETF (BITA). This is not just another spot Bitcoin ETF, but a hybrid instrument that combines direct exposure to the price of the first cryptocurrency with active selling of covered call options. Essentially, BITA is an attempt to create an income-generating asset based on a volatile coin.

How the BITA Strategy Works

The fund directly holds Bitcoin and shares of its own spot ETF — IBIT. Income is generated through the regular sale of call options, primarily on IBIT shares and occasionally on Bitcoin ETP indices. Covered calls cover approximately 25–35% of the portfolio. The product's fee is 0.65%, with the CME CF Bitcoin Reference Rate serving as the benchmark. Coinbase and BNY Mellon have been appointed as custodians.

As of June 15, BITA's net assets stood at $10.65 million, NAV per share at $53.25, with 200,000 shares outstanding. Yield data is not yet available, which is understandable: the product has just started operating.

Four Scenarios

BlackRock has identified four basic scenarios for BITA. If the price of Bitcoin falls, option income may partially offset losses. In a sideways or moderate growth market, it can improve results. However, during a sharp rally, the fund limits profit potential: selling covered calls cuts income above the strike price. At the same time, BITA retains full downside exposure below this level, and premiums may not cover drawdowns during volatility.

Expert Opinion

BITA is a classic "covered call" ETF adapted for Bitcoin. It suits investors who want to generate regular income from cryptocurrency but are willing to sacrifice some growth in exchange for reduced volatility. However, it is important to understand: in a strong bull market, such an instrument will significantly lag behind a pure spot ETF. This is more of a defensive product for a conservative portfolio, rather than an aggressive tool for chasing profits.