Quick Summary BlackRock announces 0.65% annual sponsor fee for upcoming BITA Bitcoin income ETF Fund will employ covered call strategy primarily based on BlackRock’s IBIT ETF Filing discloses
The world’s largest asset manager, BlackRock, has taken another step toward launching its iShares Bitcoin Premium Income ETF by establishing a 0.65% annual sponsor fee. The fund, which will trade under the ticker BITA on Nasdaq, intends to generate income through covered call options primarily written against IBIT. Recent regulatory filings have also revealed seed investment amounts, Bitcoin positions, IBIT share allocations, and the identities of critical service partners.
The fee disclosure came through BlackRock’s fourth amended S-1 registration statement filed with the U.S. Securities and Exchange Commission. The sponsor fee will be calculated daily against the fund’s net asset value. According to the filing, BlackRock may utilize proceeds from selling IBIT shares to cover the management fee.
BITA will operate as an actively managed fund designed to generate premium income through strategic options trading. The fund’s primary approach involves writing monthly covered call options against BlackRock’s iShares Bitcoin Trust. Additionally, the fund may deploy options strategies tied to indexes that track spot Bitcoin exchange-traded products.
This framework provides investors with Bitcoin market exposure while generating income through collected option premiums. However, covered call strategies typically cap potential gains during periods of significant Bitcoin or IBIT price appreciation. This characteristic positions BITA within the expanding universe of Bitcoin income-focused investment vehicles.
Regulatory documents revealed that BlackRock Financial Management provided the initial seed investment. The firm purchased 198,000 shares priced at $50 per share, contributing $9.9 million to establish the trust. As of the filing date, the trust held approximately $9.99 million in net assets, translating to $49.97 per share.
On June 9, the trust established positions including 109.9630217 Bitcoin and 90,901 shares of IBIT. Additionally, the fund wrote 856 options contracts funded by the seed capital infusion. These details offer investors transparency into BITA’s initial portfolio composition and strategic implementation.
Multiple prominent financial institutions will facilitate the fund’s operational infrastructure and trading execution. Goldman Sachs has been designated as the clearing agent for options transactions. Bitcoin custody responsibilities will be shared between Coinbase Custody and Anchorage Digital Bank, while BNY Mellon will manage cash and securities custody.
This development arrives amid growing interest from major financial institutions in Bitcoin income products. Goldman Sachs submitted its own application in April for a competing Bitcoin Premium Income ETF. Goldman’s proposed fund may allocate as much as 80% of its net assets to instruments providing Bitcoin exposure.
Bloomberg ETF analyst Eric Balchunas said BlackRock could launch BITA shortly following the most recent amendment. He further observed that Goldman’s competing product might receive regulatory approval around July 1. This timeline suggests both financial giants are racing to capture early market share in the Bitcoin income ETF category.
BlackRock is leveraging its existing market leadership established through IBIT as it enters this new product segment. However, IBIT recently experienced challenges, registering $61.6 million in outflows on Tuesday. Meanwhile, Bitcoin was trading around $62,206, reflecting a 1.4% gain, as markets processed fresh geopolitical developments.
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