Key facts
- The SEC has approved BlackRock's iShares Bitcoin Premium Income ETF.
- The ETF will trade on Nasdaq under the ticker BITA.
- It aims to provide investors with a mid-to-high-teens yield by selling call options on its Bitcoin holdings.
- The fund invests in BlackRock's iShares Bitcoin Trust ETF (IBIT) and generates income from option premiums.
- The ETF is scheduled to launch on Thursday.
BlackRock's iShares Bitcoin Premium Income ETF (BITA) has received approval from the U.S. Securities and Exchange Commission (SEC) and is slated to begin trading on Nasdaq on Thursday. This new ETF aims to offer investors a blend of Bitcoin exposure and income generation through a strategy of selling call options on its holdings. The fund will invest in BlackRock's existing iShares Bitcoin Trust ETF (IBIT) and generate monthly income by selling options contracts against up to 35% of its portfolio. BlackRock's head of digital assets, Robert Mitchnick, described it as a "hybrid Bitcoin exposure product" designed to provide a "mid-to-high-teens yield" under current market conditions, potentially appealing to financial advisors and institutional investors seeking income alongside digital asset exposure. The ETF's annual sponsor fee is 0.65%. It enters a market with existing products like the NEOS Bitcoin High Income ETF and follows a similar yield-generating product application filed by Goldman Sachs in April.