BlackRock Prepares Bitcoin ETF Offering Income Feature and Undercuts Competitors on Fees

The iShares Bitcoin Premium Income ETF is structured to generate income by selling call options against BlackRock’s own IBIT holdings.

BlackRock is nearing the launch of a Bitcoin income-oriented ETF.

In its latest SEC filing on Tuesday, the world’s largest asset manager submitted a fourth amendment for the product, which is expected to list on Nasdaq under the ticker BITA.

The ETF will use an options-based strategy. It will hold both Bitcoin and shares of IBIT—BlackRock’s $47 billion spot Bitcoin ETF—and will systematically sell call options on those positions to generate yield.

A call option gives the buyer the right to purchase an asset at a predetermined price. In return, the seller receives a premium, which is distributed to investors as income.

This structure provides steady yield but limits upside participation. If Bitcoin rallies strongly, gains on the covered portion are capped. The fund plans to write calls on approximately 25% to 35% of its holdings at any time.

BlackRock’s key advantage is pricing. The firm has set a 0.65% sponsor fee, undercutting leading covered-call Bitcoin ETFs such as YBTC and BTCI, which charge 0.95% and 0.99%, according to Bloomberg analyst Eric Balchunas.

Balchunas also noted the fund could launch soon, as BlackRock seeks to move ahead of Goldman Sachs, which is preparing a competing Bitcoin income product expected around July 1.

BlackRock already dominates the spot Bitcoin ETF market through IBIT, which consistently attracts the largest inflows and often holds up better than rivals during outflow periods.

Alongside Fidelity’s FBTC, IBIT has effectively concentrated the U.S. Bitcoin ETF market into a two-player leadership structure, with smaller issuers playing a limited role in daily flows.

The upcoming launch represents another step in positioning Bitcoin as an income-generating asset for mainstream investors. The filing also indicates the fund is already seeded and has begun accumulating Bitcoin and IBIT shares, suggesting it is close to launch readiness.