BlackRock launches BITA Bitcoin ETF with 15–25% yield

**BlackRock launches BITA Bitcoin income ETF with 15–25% yield target**

BlackRock listed the iShares Bitcoin Premium Income ETF (BITA) on Nasdaq June 16, aiming for a **15–25% annual yield** while capturing at least **70% of bitcoin’s price upside** via a covered call strategy.

BITA arrives ahead of Goldman Sachs’ similar income product, expected early July under SEC’s standard registration timeline. The ETF starts with **BTC** trading at $62,400, down 2.5% on the day.

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### Structure and mechanics
BITA holds bitcoin directly through Coinbase custody and shares of BlackRock’s own IBIT trust (≈$48–50 Bn AUM).
The strategy: sell call options on 25–35% of IBIT exposure, converting BTC’s elevated implied volatility into premium income. This partial overwrite preserves upside compared to fully covered-call ETFs.

Jay Jacobs, head of Thematic and Active ETFs at BlackRock, called the product a way to “turn volatility into a cash-flow stream,” leveraging high option premiums from current volatility levels.

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### Competitive positioning
- **Expense ratio:** 0.65% — undercuts NEOS BTCI (0.99%, $650 M inflows, 26.7% distribution rate) and Roundhill YBTC (0.99%).
- Liquidity advantage: IBIT collateral supports options overlay. Smaller issuers using futures lack this scale.

Goldman Sachs’ upcoming ETF will:
- Hold other spot-bitcoin ETPs instead of direct custody
- Sell calls on 40–100% of exposure (more aggressive overwrite)
- Possibly use Cayman subsidiary structure
Higher overwrite could mean more income in flat markets but less upside in rallies.

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Bloomberg’s Eric Balchunas confirmed BITA’s launch, summing up the competitive battle: **“Game on.”** The contest is now about securing positions in institutional model portfolios before the category matures.