Asset manager BlackRock has launched the iShares Bitcoin Premium Income ETF (BITA) on Nasdaq. This Bitcoin ETF combines exposure to the spot price of the cryptocurrency with an active covered call options strategy.
Source: BlackRock.BITA tracks the performance of spot Bitcoin while generating premium income. The product is described as "a tool for monthly income that reflects a significant portion of Bitcoin's growth with potentially lower volatility."
To implement its strategy, the fund directly holds Bitcoin and shares of BlackRock's spot ETF — IBIT. Income is generated through the active sale of covered calls primarily on IBIT shares, and occasionally on Bitcoin ETP indices. The target for covered calls is around 25–35% of the portfolio's assets.
BITA has an expense ratio of 0.65%. The benchmark chosen is the CME CF Bitcoin Reference Rate. Custodians are Coinbase and BNY Mellon.
As of June 15, the fund's net assets amounted to $10,649,844, with a NAV per share of $53.25. There are 200,000 shares outstanding. Performance data is not yet available.
BlackRock outlined four basic scenarios for BITA in relation to IBIT. In the event of a decline in Bitcoin's price, the options income may partially offset losses. In a sideways or moderate growth market, it could enhance returns. However, during a sharp rise in Bitcoin's price, the fund may limit its upside potential.
The company also warns that selling covered call options on IBIT shares caps profits above the strike price. Meanwhile, BITA remains exposed to declines below this level, and premiums may not cover the drop in volatility of Bitcoin or IBIT.
It is worth noting that in the first quarter of 2026, institutional investors filing 13F forms reduced their positions in U.S. spot Bitcoin ETFs by 17%.