BlackRock Launches BITA, a Bitcoin ETF That Pays Monthly Income, Targeting 15-25% Yield
— By Whatsertrade in Crypto markets
BlackRock launched its iShares Premium Income Bitcoin ETF (BITA) on Nasdaq on June 16, 2026, the first major US issuer to offer monthly cash distributions from Bitcoin exposure via a covered-call strategy.
BlackRock launched its iShares Premium Income Bitcoin ETF, trading under the ticker BITA, on Nasdaq on June 16, 2026, becoming the first major US issuer to offer monthly cash distributions from Bitcoin exposure, according to CoinDesk and FinanceFeeds.
How BITA generates income
The fund holds spot Bitcoin and shares of BlackRock's iShares Bitcoin Trust (IBIT), and sells call options on roughly 25% to 35% of its IBIT holdings to collect premium. That premium is then distributed monthly to investors. The strategy targets a 15% to 25% annualized yield while capping some of the upside in exchange for income.
Fees and timeline
BITA carries a 0.65% sponsor fee, above the 0.25% on BlackRock's plain spot IBIT but undercutting competing covered-call products. BlackRock filed on June 11, secured SEC clearance on the evening of June 15, and opened trading on June 16, reaching the market ahead of a near-identical Goldman Sachs Bitcoin income product expected around early July.
Why it matters
The product targets income-oriented institutional capital that has stayed on the sidelines of spot Bitcoin, addressing a structural gap by turning Bitcoin's volatility into a recurring yield stream. It also signals deepening competition among major issuers for Bitcoin ETF flows.
Track the Bitcoin price with the DEXTools BTC to USD converter. This article is for information only and is not financial advice.