BlackRock has submitted its fourth amended filing to the Securities and Exchange Commission (SEC) for the proposed iShares Bitcoin Premium Income ETF. The move has brought the world’s largest asset manager back into the spotlight.
The official registration statement filed with the SEC includes broad updates on the fund. First made public in January, the ETF combines spot Bitcoin exposure with an income-generating mechanism, aiming to provide investors with regular income.
The document describes the fund’s objective as follows: “The Trust’s objective is to reflect generally the performance of the price of Bitcoin while seeking to provide premium income through an actively managed strategy that consists primarily of writing (selling) call options on IBIT Shares and, from time to time, ETP Indices.”
Fee structure and Nasdaq listing
The fourth amendment also revealed that the fund will charge a sponsor fee of 0.65%. As stated in previous filings, the ETF is expected to trade on Nasdaq under the ticker BITA.
Bloomberg senior ETF analyst Eric Balchunas said he found the fee level notable. The rate is lower than those charged by the two largest Bitcoin ETFs using a covered call strategy, most likely YBTC and BTCI. These two funds charge fees of 0.95% and 0.99%, respectively.
Competition with Goldman Sachs
Balchunas believes the fund’s launch could be near. “My guess is this thing is going to launch very soon,” the analyst said, adding that BlackRock is facing competitive pressure. Goldman Sachs has filed for a Bitcoin ETF that invests in other Bitcoin ETFs, and that fund is expected to go live around July 1. According to Balchunas, “game on.”
BlackRock’s Nasdaq-listed iShares Bitcoin ETF (IBIT) is currently the world’s largest spot Bitcoin fund, with approximately $47.21 billion in net assets. The company’s new ETF is seen as part of a broader strategy to add an income layer to its existing IBIT exposure.
What is a covered call strategy?
The covered call strategy at the center of the ETF is based on selling call options against assets already held by the fund. This allows investors to generate periodic premium income regardless of broader market conditions. The strategy has long been used in traditional equity markets, but applying it to highly volatile assets such as Bitcoin is a relatively new development.
BlackRock’s plan to generate income through written options on IBIT shares and ETP indices offers an important example of how institutional investors can seek returns from crypto assets without relying solely on price appreciation. This approach could be especially attractive for large institutional funds looking for steady income.
The fund’s application is still awaiting SEC approval. Once the approval process is completed, BITA will become one of the rare products offering institutional investors both Bitcoin exposure and an income objective in a single vehicle.
