BlackRock has launched a new Bitcoin exchange-traded fund (ETF) called BITA. The fund holds Bitcoin indirectly through its exposure to BlackRock’s existing spot Bitcoin ETF, IBIT. BITA aims to generate income by using a covered-call strategy: it sells call options on a portion of its IBIT-related Bitcoin holdings, described as up to 35% of those holdings. This approach is designed to provide periodic income to investors while potentially limiting the fund’s participation in Bitcoin’s upside when prices rise strongly. The outlets note that the trade-off is that BITA may forgo some gains in exchange for the option premium generated from selling calls. Both sources characterize the strategy as targeting double-digit yield expectations, though specific yield figures are presented as an outcome of the covered-call mechanism rather than a guarantee. Overall, the launch adds a new structured Bitcoin ETF option from BlackRock that focuses on income generation through option selling rather than solely tracking Bitcoin price movements.
BlackRock launches BITA Bitcoin ETF using covered-call income strategy
BlackRock has launched a new Bitcoin exchange-traded fund (ETF) called BITA. The fund holds Bitcoin indirectly through its exposure to BlackRock’s existing spot Bitcoin ETF, IBIT. BITA aims to generat...
- BlackRock launches BITA, a new Bitcoin ETF.
- BITA holds exposure to Bitcoin through BlackRock’s spot Bitcoin ETF IBIT.
- BITA uses a covered-call approach by selling call options on up to 35% of its IBIT-related holdings.
- The strategy is designed to generate income from call-option premiums.
- Selling call options can limit BITA’s upside when Bitcoin gains are strong.
BlackRock launched an ETF that limits Bitcoin gains in exchange for double-digit payouts by selling call options on its holdings.
2 hours agoBITA holds bitcoin and BlackRock’s bitcoin ETF (IBIT) and generates income by selling call options on up to 35% of those IBIT holdings.
2 hours agoSpaceX IPO lifts Elon Musk’s net worth above $1 trillion after record share debut
Elon Musk becomes the first person to be valued at more than $1 trillion on paper after SpaceX completes what multiple o...
Aldi to open 16 new UK stores after £370m investment
Aldi plans to open 16 new supermarket stores across the UK over the coming months, supported by a £370 million investmen...
CMA clears Associated British Foods’ takeover of Hovis
The UK Competition and Markets Authority (CMA) has cleared Associated British Foods’ (ABF) proposed takeover of Hovis. U...