BlackRock Launches Bitcoin Covered-Call ETF Seeking Monthly Options Income

BlackRock has launched a Bitcoin exchange-traded fund designed to generate options premium income. The strategy keeps Bitcoin price exposure while seeking monthly income by selling call options on part of its holdings.

The iShares Bitcoin Premium Income ETF, or BITA, was launched on June 16, according to crypto news outlet The Block.

BITA invests in Bitcoin through spot holdings and the iShares Bitcoin Trust, or IBIT, BlackRock’s flagship spot Bitcoin ETF. It also sells call options on about 25% to 35% of its IBIT holdings to generate options premium income for distribution to investors.

“A significant share of our clients are interested in Bitcoin, but they are also highly focused on generating income,” Robert Mitchnick, BlackRock’s head of digital assets, said. He said BITA was designed to meet that demand. Investors can retain most of their upside exposure to Bitcoin while earning potential income through the ETF structure.

A covered-call strategy involves holding the underlying asset while selling call options on part of that position in exchange for a premium. In flat markets or during moderate gains, that premium can boost returns. In a strong rally, however, upside on the portion covered by sold calls may be limited.

Because Bitcoin cannot generate native yield through staking in the way Ethereum and Solana can, more income-focused Bitcoin ETF products have been adopting covered-call strategies.

Goldman Sachs filed in April to launch a Bitcoin premium income ETF using a partial covered-call strategy. The Block reported that BITA reached the market before Goldman’s Bitcoin income ETF.

According to BlackRock, IBIT options average $3.7 billion in daily trading volume, placing them in the top 1% of all options products. BITA trades on Nasdaq and charges a 0.65% expense ratio. That is higher than IBIT’s 0.25% fee, but lower than existing income-focused Bitcoin ETFs.

“Delivering a strategy like BITA at scale requires deep expertise in ETFs and options, rigorous risk management and institutional-grade infrastructure,” Jessica Tan, BlackRock’s head of product solutions for the Americas, said.

The launch of BITA highlights growing product diversification in the Bitcoin ETF market. As offerings expand beyond simple spot-price tracking to include monthly income, options premium and volatility strategies, both institutional and retail investors are gaining more choices.