BlackRock races Goldman Sachs to turn Bitcoin volatility into ETF income
BlackRock amended its SEC filing for the iShares Bitcoin Premium Income ETF (ticker BITA), pointing to an imminent launch. The fund will charge a 0.65% annual sponsor fee and use a covered-call strategy: it will hold Bitcoin, IBIT shares, cash instruments, and sell call options mainly on IBIT to generate income. BlackRock’s target overwrite is relatively modest at 25%–35% of net assets, preserving some upside in rallies while aiming for premium distributions in flat or mildly down markets. The filing also disclosed initial seeding and portfolio setup: $9.9 million in seed capital, about 109.96 Bitcoin, 90,901 IBIT shares, and 856 option contracts, with initial NAV near $49.97 per share. BITA intensifies competition with Goldman Sachs’ competing Bitcoin Premium Income ETF, which is expected to be effective around July and uses a more aggressive overwrite range of 40%–100%, likely offering higher income but more upside cap. These products mark a shift from spot Bitcoin exposure toward yield-focused crypto ETFs.
