BlackRock Launches New Bitcoin ETF with Covered Call Strategy

BlackRock has expanded its crypto product line with the launch of a new Bitcoin ETF on the Nasdaq. The iShares Bitcoin Premium Income ETF, ticker BITA, combines direct exposure to the spot price of Bitcoin with an active strategy of selling covered calls.

This allows investors to receive regular monthly income while maintaining participation in the upward trend of Bitcoin, but with potentially lower volatility compared to a net asset.

BITA's portfolio consists directly of physical Bitcoin and shares of BlackRock's flagship spot fund, the iShares Bitcoin Trust (IBIT).

The fund actively sells call options, where the underlying asset is primarily IBIT shares or broader Bitcoin ETP indices. The target for covered call positions is set at 25-35% of total assets under management.