The iShares Bitcoin Premium Income ETF profits by selling call options on BlackRock's own IBIT.
By Shaurya Malwa Jun 11, 2026, 8:59 a.m. 2 min readMake preferred onKey details:
- BlackRock is on the verge of launching the iShares Bitcoin Premium Income ETF, which will be available on Nasdaq with the ticker BITA, targeting to provide income through bitcoin investments.
- The fund's income strategy involves holding bitcoin and shares of BlackRock’s IBIT ETF, while selling call options on 25% to 35% of its holdings each month, thereby capping potential gains in exchange for consistent premiums.
- With a sponsor fee of 0.65%, BlackRock's BITA will be cheaper than competing covered-call bitcoin ETFs, prompting analysts to predict a swift launch as the company races against Goldman Sachs.
BlackRock is nearing the launch of a bitcoin fund that offers income.
The asset management giant filed its fourth amendment for the iShares Bitcoin Premium Income ETF on Tuesday, as detailed in an SEC filing. The ETF will trade under the ticker BITA on Nasdaq.
The fund's income is derived from options trading. It will hold both bitcoin and shares of IBIT, BlackRock's $47 billion spot bitcoin ETF, and sell call options on those IBIT shares each month.
A call option grants the buyer the right to purchase shares at a predetermined price, and the fund earns a premium for this right, which is then distributed to investors as income.
This strategy means that while the fund can generate steady income, it limits potential profits if there is a significant rise in bitcoin prices. The fund intends to write calls on 25% to 35% of its total value at any given time.
However, the competitive fee structure is a significant advantage. BlackRock has established a sponsor fee of 0.65%, which is lower than the fees of the two largest covered-call bitcoin ETFs, YBTC and BTCI, which charge 0.95% and 0.99% respectively, according to Bloomberg analyst Eric Balchunas on X.
BlackRock has just submitted a new (likely final) amendment for their Bitcoin Premium Income ETF $BITA and WE HAVE A FEE: 65bps. This is obviously higher than $IBIT and others, but lower than the two major ETFs in the 'covered call' category which charge 95bp and 99bp. I suspect this will launch soon… pic.twitter.com/KBwFrmkdbJ
— Eric Balchunas (@EricBalchunas) June 10, 2026
Balchunas further noted that he anticipates a quick launch for the fund, emphasizing that BlackRock is under pressure to outpace Goldman Sachs, whose own bitcoin fund is expected to launch around July 1.
BlackRock currently leads in the distribution of spot bitcoin ETFs, with its iShares Bitcoin Trust, IBIT, recognized as a flagship product in the sector, consistently attracting the largest inflows and often absorbing capital even amid redemptions in competing funds.
IBIT and Fidelity’s FBTC have effectively created a two-firm market in the U.S. for spot bitcoin ETFs, with smaller issuers contributing little to daily trading volume.
The anticipated launch marks a significant move towards positioning bitcoin as an income-generating asset for mainstream investors. The recent filing indicates that the fund has already been seeded and is in the process of acquiring bitcoin and IBIT shares, suggesting it is nearing readiness for launch.
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