Blackrock Prepares to Launch Bitcoin Covered-Call ETF
- Blackrock’s Bitcoin Premium Income ETF (BITA) is expected to launch by June 19, following an SEC Form 8-A filing on June 11.
- BITA writes covered calls on approximately Bitcoin amounting to about 25% to 35% of its net asset value monthly, targeting income-focused investors.
- The fund charges a competitive fee of 0.65%, lower than rivals YBTC and BTCI, which charge around 0.95% and approximately ETF at roughly .99% respectively.
- BITA holds Bitcoin in cold storage through Coinbase Custody and maintains exposure with IBIT shares while writing options on the Nasdaq ISE exchange.
- Goldman Sachs plans to launch its own Bitcoin fund around July, positioning Blackrock’s BITA as potentially earlier in the market.
The upcoming launch of Blackrock’s BITA aims to capture institutional investors seeking yield from Bitcoin exposure through a covered-call strategy, offering a competitive fee structure compared to existing products in the market.
With Blackrock managing approximately $14 trillion in assets, the introduction of BITA could leverage significant distribution power within the Bitcoin income product space, ahead of Goldman Sachs’ anticipated entry into the market in July. (Source)
