Particle.news
Download on the App Store

BlackRock Launches BITA, a Covered‑Call Bitcoin ETF, on Nasdaq

The fund sells call options on a portion of IBIT holdings to generate monthly income for investors.

Overview

  • BlackRock’s iShares Bitcoin Premium Income ETF began trading on Nasdaq on June 16, 2026.
  • BITA gains bitcoin exposure through direct BTC and shares of BlackRock’s iShares Bitcoin Trust (IBIT) and sells covered call options on roughly 25%–35% of the portfolio to collect premiums.
  • The fund targets a headline annualized yield framed at about 15%–25% (commonly described as mid‑to‑high‑teens) and charges a 0.65% sponsor fee.
  • BlackRock is using IBIT’s deep liquidity—reported at roughly $48.6–$50 billion—to execute the options strategy and is racing with rivals such as Goldman Sachs, which has filed a similar product.
  • Market watchers will focus on BITA’s first monthly distribution, initial asset flows, and how the fund performs versus IBIT in a sharp bitcoin rally to see if option premiums provide repeatable income without costing too much upside for long‑term holders.