The iShares Bitcoin Premium Income ETF is designed to generate yield by selling call options against BlackRock’s IBIT holdings.
BlackRock is close to launching a Bitcoin income-focused ETF.
In its latest SEC filing on Tuesday, the world’s largest asset manager submitted a fourth amendment for the product, which is expected to trade on Nasdaq under the ticker BITA.
The fund will rely on an options strategy to produce income. It will hold both Bitcoin and shares of IBIT, BlackRock’s $47 billion spot Bitcoin ETF, and will regularly sell call options on those positions.
A call option gives the buyer the right to purchase an asset at a fixed price. In exchange, the seller earns a premium, which is passed on to investors as income.
While this approach generates steady yield, it also limits upside participation. If Bitcoin rallies sharply, gains on the covered portion are capped. The fund plans to write calls on roughly 25% to 35% of its holdings at any time.
BlackRock’s competitive edge lies in pricing. The firm has set a 0.65% sponsor fee, undercutting leading covered-call Bitcoin ETFs such as YBTC and BTCI, which charge 0.95% and 0.99%, according to Bloomberg analyst Eric Balchunas.
Balchunas added that the launch could arrive soon, noting BlackRock’s urgency to beat Goldman Sachs to market, with Goldman’s competing Bitcoin income product expected around July 1.
BlackRock already dominates the spot Bitcoin ETF market through IBIT, which consistently attracts the largest inflows and often outperforms rivals during periods of outflows.
Together with Fidelity’s FBTC, IBIT has helped concentrate the U.S. Bitcoin ETF landscape into a two-player structure, with smaller issuers contributing relatively little to daily flows.
The new ETF marks another step in transforming Bitcoin into a yield-generating asset for mainstream investors. The filing also indicates the fund is already seeded and has begun accumulating Bitcoin and IBIT shares, suggesting it is nearing launch.
