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BlackRock, the world’s largest asset manager, has moved closer to launching its iShares Bitcoin Premium Income ETF by establishing a 0.65% annual sponsor fee. The fund is set to trade on Nasdaq under the ticker BITA and aims to generate income through covered call options, primarily written against BlackRock’s iShares Bitcoin Trust (IBIT). Recent regulatory filings also disclose initial funding, early Bitcoin and IBIT holdings, and key service providers.
The fee details were included in BlackRock’s fourth amended S-1 registration statement filed with the U.S. Securities and Exchange Commission. The sponsor fee will be calculated daily based on the fund’s net asset value. The filing states that BlackRock may use proceeds from selling IBIT shares to help cover the management fee.
BITA will be structured as an actively managed fund focused on generating premium income through options trading. Its primary strategy involves writing monthly covered call options against iShares Bitcoin Trust. The fund may also use options strategies linked to indexes that track spot Bitcoin exchange-traded products.
Covered call strategies typically limit upside during periods when Bitcoin or IBIT prices rise sharply, while still providing income through option premiums. The approach places BITA among a growing set of Bitcoin income-focused investment products.
Regulatory documents show that BlackRock Financial Management provided the initial seed investment. The firm purchased 198,000 shares at $50 per share, contributing $9.9 million to establish the trust. As of the filing date, the trust reported net assets of about $9.99 million, or $49.97 per share.
On June 9, the trust established positions including 109.9630217 Bitcoin and 90,901 shares of IBIT. The filing also indicates that 856 options contracts were written, funded by the seed capital infusion.
The filing names multiple institutions to support BITA’s operational infrastructure. Goldman Sachs will serve as the clearing agent for options transactions. Coinbase Custody and Anchorage Digital Bank will share Bitcoin custody responsibilities, while BNY Mellon will manage cash and securities custody.
The launch effort comes as major financial institutions pursue Bitcoin income products. Goldman Sachs submitted an application in April for a competing Bitcoin Premium Income ETF. The proposed fund may allocate up to 80% of its net assets to instruments providing Bitcoin exposure.
Bloomberg ETF analyst Eric Balchunas said BlackRock could launch BITA shortly after the most recent amendment. He also noted that Goldman’s competing product might receive regulatory approval around July 1, suggesting both firms are moving to secure early positioning in the Bitcoin income ETF segment.
The filing arrives as IBIT recently saw challenges, registering $61.6 million in outflows on Tuesday. At the same time, Bitcoin was trading around $62,206, up 1.4% as markets processed new geopolitical developments.
