Hassan Maishera
TL;DR
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BlackRock filed the fourth amendment for its iShares Bitcoin Premium Income ETF on Tuesday.
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The fund seeks to provide yield through active covered call strategies on IBIT shares and ETP indices.
BlackRock, the world’s largest asset manager, has submitted a fourth amendment to its proposed bitcoin exchange-traded fund (ETF), according to a filing with the U.S. Securities and Exchange Commission (SEC).
The updated filing relates to the firm’s iShares Bitcoin Premium Income ETF, which was first unveiled in January and is designed to combine direct bitcoin exposure with an income-generating strategy.
ETF Structure Blends Bitcoin Exposure With Income Strategy
According to the filing, the ETF aims to track the performance of bitcoin while also generating premium income through an actively managed options strategy.
The fund will primarily generate yield by writing (selling) call options on iShares Bitcoin Trust (IBIT) shares and, occasionally, on related exchange-traded product indices.
The latest amendment discloses a sponsor’s fee of 0.65%, positioning it below competing “covered call” bitcoin ETFs, which carry fees of around 0.95% and 0.99%.
The ETF is expected to trade on the Nasdaq under the ticker BITA, pending final approval.
Bloomberg ETF analyst Eric Balchunas suggested the product could launch soon, noting competitive pressure in the market.
He added that BlackRock may be aiming to move ahead of Goldman Sachs, which is reportedly targeting a July 1 effective date for its own offering.
“My guess is this is going to launch very soon,” Balchunas said. “They’re under gun to beat Goldman to [market]. Game on.”
BlackRock’s Bitcoin ETF Dominance
BlackRock already operates the iShares Bitcoin ETF (IBIT), which is the largest spot bitcoin fund on the market, with approximately $47.21 billion in net assets.
The new proposed fund would expand the firm’s bitcoin ETF lineup by offering investors both exposure and income potential in a single product.
