BlackRock launches a hybrid Bitcoin ETF with an options strategy — BITA promises returns regardless of volatility
Asset manager BlackRock has officially launched a new exchange-traded fund on Nasdaq — the iShares Bitcoin Premium Income ETF (BITA). This is not just another spot Bitcoin ETF, but a complex hybrid instrument that combines direct exposure to the first cryptocurrency with active selling of covered call options.
BITA tracks the spot price of Bitcoin while generating premium income through option premiums. The product is positioned as "an instrument for monthly income that reflects a significant portion of Bitcoin's growth with potentially lower volatility."
The fund's strategy is based on direct ownership of Bitcoin and shares of BlackRock's spot ETF — IBIT. Income is generated through active selling of call options, primarily on IBIT shares, and occasionally on Bitcoin ETP indices. The covered call target is 25–35% of the portfolio.
BITA's fee is set at 0.65%. The benchmark is the CME CF Bitcoin Reference Rate. Custodial partners are Coinbase and BNY Mellon.
As of June 15, the fund's net assets amounted to $10,649,844, with a NAV per share of $53.25. There are 200,000 shares outstanding. Actual yield data has not yet been disclosed.
BlackRock has outlined four basic scenarios for BITA relative to IBIT. If Bitcoin falls, option income may partially offset losses. In sideways or moderate growth markets, it can improve the final result. However, during a sharp rally in the first cryptocurrency, the fund limits profit potential, as selling calls caps gains above the strike price.
The company separately warns: BITA retains downside exposure below the strike, and premiums may not cover drawdowns in conditions of high volatility for Bitcoin or IBIT.
Recall that in the first quarter of 2026, institutional investors filing 13F forms 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 an instrument with more predictable returns — especially during consolidation periods. However, investors should clearly understand: reducing volatility comes at the cost of capping upside. This is a classic "premium versus growth" trade.