BlackRock launches the iShares Bitcoin Premium Income ETF, ticker BITA, aiming to generate income from bitcoin holdings while capping some upside. Multiple outlets report that BITA uses a covered-call approach. The ETF holds bitcoin exposure through BlackRock’s spot bitcoin ETF, IBIT, and earns income by selling call options on a portion of those IBIT holdings. The Block and Decrypt describe the mechanism as selling calls on up to 35% of the underlying IBIT position, which can limit how much gains the ETF captures when bitcoin rises. Yahoo Finance reports that BITA is designed to target a combination of potential upside and yield, with coverage-limited gains and income figures discussed in the context of early trading performance. Bloomberg also confirms the product launch and names BlackRock’s digital assets leadership in connection with the announcement. Overall, the new fund trades as an ETF and seeks to provide periodic income while using option premiums, accepting that the covered-call structure can reduce participation in larger bitcoin rallies.
BlackRock launches BITA, a bitcoin income ETF using a covered-call strategy
BlackRock launches the iShares Bitcoin Premium Income ETF, ticker BITA, aiming to generate income from bitcoin holdings while capping some upside. Multiple outlets report that BITA uses a covered-call...
- BlackRock launches iShares Bitcoin Premium Income ETF (BITA).
- BITA uses a covered-call strategy to generate income by selling call options.
- BITA holds bitcoin exposure via BlackRock’s IBIT spot bitcoin ETF.
- Call selling applies to up to 35% of IBIT holdings, limiting some upside.
- Reports describe BITA as targeting income/yield alongside partial upside rather than full bitcoin gains.
Robert Mitchnick, global head of digital assets at BlackRock, joins Scarlet Fu and Tim Stenovec on "Bloomberg Crypto." BlackRock launched today the iShares Bitcoin Premium Income ETF (Ticker: BITA). (Source: Bloomberg)
2 months agoBlackRock launched an ETF that limits Bitcoin gains in exchange for double-digit payouts by selling call options on its holdings.
2 months agoBITA holds bitcoin and BlackRock’s bitcoin ETF (IBIT) and generates income by selling call options on up to 35% of those IBIT holdings.
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