BlackRock Launches BITA, a Covered-Call Bitcoin ETF Designed to Generate Monthly Income

BlackRock this week listed the iShares Bitcoin Premium Income ETF (BITA) on Nasdaq, extending its spot-bitcoin franchise into structured-income territory by overlaying a covered-call strategy on top of its flagship IBIT fund.

The fund began trading on June 9, with bitcoin priced at $61,825.37 per the CME CF Bitcoin Reference Rate at inception, according to the fund’s prospectus filed with the SEC. The expense ratio is 0.65% annually.

"BITA is now live! BITA combines exposure to bitcoin with an options strategy aimed at providing monthly income potential and helping reduce volatility, relative to spot exposure," iShares said on X.

How the Strategy Works

BITA holds a combination of bitcoin and shares of IBIT, BlackRock's existing $51 billion spot-bitcoin ETF. The Trust writes monthly call options on 25% to 35% of its net asset value, generating option premiums that are passed to investors as income distributions. When call options are exercised, BITA shareholders forgo gains above the options' strike price on that portion of the portfolio.

The options are standardized and FLEX contracts listed on Nasdaq ISE and Cboe Exchange. Goldman Sachs & Co. LLC serves as clearing agent. Bitcoin custody is handled by Coinbase Custody Trust Company, with Anchorage Digital Bank as a backup custodian. BNY Mellon holds cash and securities.

The Upside Trade-Off

A covered-call structure collects option premiums when bitcoin trades sideways or falls, but caps participation in sharp upside moves on the hedged portion of the book. Institutional investors familiar with equity income products use similar mechanics through ETFs such as the JPMorgan Equity Premium Income ETF (JEPI); BITA applies the same approach to bitcoin.

The timing places BITA against a growing field of bitcoin yield-wrapper products from issuers including YieldMax and Roundhill. It also arrives four days after Converge's conversation with Anchorage Digital's head of research on bitcoin options and institutional yield strategies, which flagged rising institutional demand for structured crypto income.

BITA trades under IBIT's existing Nasdaq listing infrastructure, using the same custodians that underpin the spot fund. The Trust is not registered as an investment company under the Investment Company Act of 1940. Distributions are expected monthly.