Blackrock Targets Bitcoin Yield With 0.65% Fee Covered-Call ETF

Blackrock Plans Bitcoin Income ETF as Launch Race With Goldman Sachs Heats Up

Blackrock has taken another step toward launching a bitcoin-linked income product, filing a fourth amendment with the U.S. Securities and Exchange Commission for its proposed Ishares Bitcoin Premium Income ETF.

The fund, first unveiled in January, is designed to give investors exposure to bitcoin while also generating income through an options strategy.

According to the filing, the trust aims to generally reflect the price performance of bitcoin while earning premium income by actively selling call options primarily on shares of Blackrock’s Ishares Bitcoin Trust (IBIT). The fund may also write options on exchange-traded product indexes from time to time.

The latest amendment disclosed a sponsor fee of 0.65%. The ETF is expected to trade on Nasdaq under the ticker BITA, according to earlier filings.

The structure places BITA in the growing category of covered call funds, products that trade some upside potential for regular income. In practice, the fund would collect option premiums by selling calls linked to bitcoin exposure. If bitcoin rises sharply, the strategy may limit some gains. If markets trade sideways or remain volatile, the option income could become more attractive.

Covered Call Race Heats Up

Bloomberg Senior ETF Analyst Eric Balchunas said the newest amendment may be the final one before launch. He said the 65-basis-point fee is higher than Blackrock’s spot bitcoin ETF but lower than the two largest covered call ETFs, which charge 0.95% and 0.99%.

Balchunas said he expects the product to launch “very soon,” noting that Blackrock may be looking to reach the market before Goldman Sachs, whose competing product is expected to become effective around July 1.

The key question for investors will be yield. Covered call funds can vary widely depending on how close to the current asset price the options are written. A more aggressive strategy may generate higher income but give up more upside. A more conservative strategy may preserve more price appreciation while offering a lower payout.

That trade-off will matter in bitcoin, where large price swings are common, and investor expectations differ sharply. Some buyers may want income from crypto exposure. Others may prefer full participation in bitcoin’s upside.

Blackrock’s filing shows how quickly the crypto ETF market is evolving beyond simple spot exposure. After the success of IBIT, the asset manager is now testing whether investors want more traditional portfolio tools built around bitcoin.

For the broader market, BITA would mark another step in the blending of digital assets with familiar Wall Street income strategies.