BlackRock's income-paying bitcoin ETF nears launch at a fee that undercuts rivals
Summary
BlackRock is nearing the launch of a bitcoin income fund, the iShares Bitcoin Premium Income ETF, trading on Nasdaq as BITA. The fund will generate monthly income by holding bitcoin and shares of BlackRock’s spot bitcoin ETF, IBIT, then selling call options on part of the IBIT position. The option premiums become investor payouts, but the strategy limits upside if bitcoin rises sharply. The fund plans to write calls on 25% to 35% of its value at a time. BlackRock set the sponsor fee at 0.65%, below major competing covered-call bitcoin ETFs. The fund is already seeded and has begun buying bitcoin and IBIT shares, suggesting launch is imminent. The move expands bitcoin into a mainstream income-generating product.
