BlackRock Launches Bitcoin Premium Income ETF (BITA) Using Covered Call Strategy

Jun 16, 2026

BlackRock has launched the iShares Bitcoin Premium Income ETF (BITA), which began trading on the Nasdaq. The fund aims to provide investors with Bitcoin exposure while generating monthly income through a covered call strategy, selling options on 25-35% of its holdings. BITA targets income-focused investors and could offer a "mid-to-high-teens yield," complementing BlackRock's successful spot Bitcoin ETF, IBIT.

BITA ETF launch details

▪The BITA ETF trades on the Nasdaq exchange under the ticker symbol BITA.
▪Goldman Sachs filed an application for a similar income-generating Bitcoin ETF in April.
▪BlackRock views the BITA ETF as a complement to its existing iShares Bitcoin Trust (IBIT), not a replacement.
▪The BITA fund has an annual sponsor fee of 0.65%.
▪BlackRock launched the iShares Bitcoin Premium Income ETF (BITA) on June 16, 2026.
▪The U.S. Securities and Exchange Commission approved the BITA fund's notice of effectiveness on June 15, 2026.

Covered call strategy mechanics

▪The fund aims to retain about 70% of Bitcoin's upside exposure while targeting an annual yield of 15% to 25%.
▪The BITA fund is designed to generate monthly income for investors using a covered call strategy.
▪To generate income, BITA sells call options on approximately 25% to 35% of its portfolio.
▪Under current market conditions, BlackRock's Robert Mitchnick stated the ETF could offer a "mid-to-high-teens yield."
▪The fund holds spot bitcoin and shares of BlackRock's iShares Bitcoin Trust (IBIT).
▪A covered call strategy can enhance returns in sideways or mildly bullish markets but caps upside during strong bull markets.
▪BlackRock's target audiences for BITA include income-focused investors, current bitcoin holders seeking cash flow, and investors who have historically avoided non-yielding assets.
▪The Bitcoin protocol does not offer a native way to generate returns, unlike staking mechanisms for other cryptocurrencies like ETH or SOL.