BlackRock's Bitcoin Income ETF BITA Cleared To Trade on Nasdaq

The US Securities and Exchange Commission (SEC) granted effectiveness to the fund’s registration on 14 Jun, with Nasdaq certifying the listing the following day. BlackRock filed the final Form 8-A on 11 Jun.

Covered call strategy

BITA is an actively managed covered-call fund. It gains Bitcoin exposure through a combination of direct bitcoin held in custody at Coinbase and shares of BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot bitcoin ETF by assets under management. The fund writes monthly call options on IBIT shares and passes the premiums collected from selling those options to investors as monthly income.

This strategy provides regular yield but limits upside. If Bitcoin rises sharply above the options’ strike price, the fund forgoes gains beyond that level. BITA carries a 0.65% expense ratio, lower than most existing covered-call bitcoin products, which typically charge between 0.95% and 0.99%.

Eric Balchunas, senior ETF analyst at Bloomberg, wrote on X that the fund will target a 15–25% annual yield while aiming to capture at least 70% of Bitcoin’s upside. The product is aimed at income-focused investors willing to trade some upside potential for regular distributions.

BlackRock moves first on Bitcoin yield products

The approval positions BlackRock ahead of Goldman Sachs, which is expected to launch a similar Bitcoin income product in early July, according to Balchunas. Grayscale Investments already offers a comparable fund, but BlackRock’s scale, its integration with the large IBIT platform, and its extensive institutional distribution network give it structural advantages in liquidity and adoption.

This development marks BlackRock’s first move into income-generating crypto products. It could influence how other major asset managers approach yield strategies in digital assets over the coming months.