BlackRock officially listed the iShares Bitcoin Premium Income ETF (BITA) on Nasdaq this week, giving investors a way to collect monthly income from bitcoin without selling their underlying position. The fund uses a covered call strategy on both spot bitcoin and shares of BlackRock’s own IBIT, selling call options on 25% to 35% of its IBIT holdings and distributing the premiums as monthly dividends.
How BITA's Covered Call Strategy Works
BITA sells call options on a slice of its IBIT portfolio, collecting premiums that shareholders receive monthly. The remaining 65% to 75% of the fund stays fully exposed to bitcoin’s price moves, so investors still get upside—though the covered portion caps gains during sharp rallies because BlackRock must sell at the strike price. The approach targets three groups: income-focused investors, bitcoin holders who want cash flow, and people who have avoided bitcoin or gold because those assets don't generate income.
A Tax Edge for Options Income
The options BlackRock writes on IBIT qualify as Section 1256 contracts, meaning any capital gains from premiums get taxed at a 60% long-term, 40% short-term split—a more favorable treatment than standard short-term rates. That structure could make BITA attractive for taxable accounts. BITA charges a 0.65% sponsorship fee, up from IBIT’s 0.25% but cheaper than competitors like Roundhill’s YBTC and NEOS’ BTCI. The fund is registered under the Securities Act of 1933, not the Investment Company Act of 1940, so it operates outside the mutual fund framework that governs traditional ETFs.
Where BITA Fits in BlackRock’s Crypto Lineup
BlackRock already runs the biggest U.S. spot bitcoin ETF, IBIT, which has pulled in nearly $49 billion in assets since its January 2024 debut. IBIT’s options market averages $3.7 billion in daily notional volume—top 1% across all options products. The firm captured roughly 90% of all U.S.-listed digital asset ETP flows in 2025 and oversees more than $130 billion across crypto ETPs, tokenized liquidity funds, and stablecoin reserves. Rick Rieder, BlackRock’s chief investment officer of global fixed income, summed up the firm’s view: ‘I think bitcoin is ultimately going considerably higher.’
Goldman Sachs Follows Suit
Goldman Sachs filed for its own Bitcoin Premium Income ETF in April 2026. Bloomberg ETF analyst Eric Balchunas projected the fund would go effective around July 1, 2026—about two weeks from now. BlackRock’s first-mover advantage in the income ETF lane may shrink quickly as Wall Street piles into structured bitcoin products. The timing isn’t ideal for a full-blown bull market: covered call funds tend to lag in strong rallies because the capped upside limits gains on the hedged portion. But for investors who want a paycheck from their bitcoin position, BITA is now live.
