BlackRock launched the iShares Bitcoin Premium Income ETF (BITA) to provide investors with monthly income. The fund holds a combination of spot Bitcoin and iShares Bitcoin Trust (IBIT) shares.
The ETF generates yield by writing covered call options on up to 35% of its IBIT position. This strategy targets an annual yield ranging from 15% to 25%.
The product offers Bitcoin price exposure alongside regular cash distributions. This launch expands BlackRock’s crypto portfolio following the success of its initial IBIT trust.
The move positions BlackRock ahead of competitors like Goldman Sachs. Goldman Sachs is currently developing similar yield-bearing crypto products.