BlackRock’s Bitcoin income-focused ETF will begin trading on Nasdaq on June 16 after receiving regulatory approval from the U.S. Securities and Exchange Commission.
Summary
- BlackRock’s iShares Bitcoin Premium Income ETF (BITA) is set to begin trading on Nasdaq on June 16 after receiving SEC approval and exchange clearance.
- The fund seeks to generate income through a covered-call strategy on IBIT holdings while targeting a 15%–25% annual yield.
- Alongside BITA, BlackRock recently expanded its ETF lineup with the STAR space technology fund in Europe and the UK.
According to Bloomberg ETF analyst Eric Balchunas, Nasdaq confirmed that BlackRock’s iShares Bitcoin Premium Income ETF, trading under the ticker BITA, would launch on Tuesday. The confirmation came one day after the SEC approved the fund’s notice of effectiveness, clearing the way for public trading.
As reported by crypto.news, BlackRock filed for the product on June 12, positioning it as an income-generating alternative for investors seeking exposure to Bitcoin-related returns without directly holding the cryptocurrency.
According to the fund’s final prospectus, BITA is designed to generate income while maintaining participation in Bitcoin price movements. Rather than purchasing Bitcoin itself, the ETF will primarily invest in shares of BlackRock’s iShares Bitcoin Trust ETF (IBIT), which remains the world’s largest spot Bitcoin ETF by assets under management.
How the ETF generates income
Details outlined in BlackRock’s filing show that the fund will use a covered-call strategy by selling call options linked to its IBIT holdings. The premiums collected from those options are expected to serve as the primary source of income for shareholders.
Providing additional context on the structure, Balchunas said:
“The ETF will target 15-25% annual yield while trying to capture at least 70% of bitcoin’s upside in process.”
The prospectus states that investors will pay a sponsor fee of 0.65% per year. The fee accrues daily and is scheduled to be paid quarterly.
BlackRock also disclosed that investors may indirectly bear other costs associated with options transactions, brokerage commissions, financing expenses, legal services, and fund operations.
Earlier commentary from Balchunas described BITA as the anticipated successor product to IBIT. He also noted that IBIT has become the fastest-growing ETF in industry history based on asset growth.
BlackRock expands its ETF lineup
The Bitcoin income product arrives as BlackRock continues adding new funds across different investment themes.
Last week, the asset manager introduced the iShares Space Technologies UCITS ETF in the United Kingdom and Europe. According to BlackRock, the fund trades under the ticker STAR and tracks the STOXX Global Space Satellites and Drones Index.
BlackRock said companies included in the index must generate at least 25% of their revenue from space, satellite, or drone-related businesses. The firm also introduced a fast-entry mechanism that allows newly listed qualifying companies to enter the benchmark within 10 to 30 days of going public.
According to BlackRock, the rule was created to capture developments in rapidly evolving industries, including potential future stock market listings tied to the space sector. The company specifically pointed to growing investor interest surrounding a possible future listing of SpaceX.
Balchunas had previously estimated that BITA would likely begin trading later in the week. Nasdaq’s approval ultimately brought the launch forward, allowing the fund to reach the market sooner than expected.
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