BlackRock is close to launching an income-generating bitcoin fund.
The world’s largest asset manager filed its fourth amendment to the iShares Bitcoin Premium Income ETF on Tuesday, according to its SEC filing. The fund will be listed on Nasdaq under the symbol BITA.
Income comes from options. The fund holds bitcoin and shares of IBIT, BlackRock’s $47 billion spot bitcoin ETF. Every month he sells call options on those IBIT shares.
A call option gives the buyer the right to buy the stock at a certain price. The fund charges a fee, called a premium, for selling that right. That premium is the income it delivers to investors.
As such, selling calls limits the fund’s gains if bitcoin rallies strongly. Investors get stable income in exchange for giving up part of a big move. The fund plans to issue call options between 25% and 35% of its value at a time.
However, the fee is the advantage. BlackRock set the sponsor fee at 0.65%, which is below the two largest covered bitcoin funds, YBTC and BTCI, which charge 0.95% and 0.99%, Bloomberg analyst Eric Balchunas said in a post on X.
BlackRock just filed a new (and probably final) amendment to its Bitcoin Premium Income ETF $BITA and WE HAVE A RATE: 65 bps. Obviously higher than $IBIT et al, but lower than the two largest ETFs in the ‘covered calls’ category, which are 95bps and 99bps. I guess this is going to be released… pic.twitter.com/KBwFrmkdbJ
– Eric Balchunas (@EricBalchunas) June 10, 2026
Balchunas added that he expects the fund to launch very soon, noting that BlackRock is under pressure to beat Goldman Sachs in the market, and that Goldman’s own bitcoin fund will go live around July 1.
BlackRock already has the strongest distribution base in the bitcoin ETF spot market. Its iShares Bitcoin Trust, IBIT, has become the sector’s flagship product, regularly attracting the biggest inflows and often absorbing capital even as rival funds see redemptions.
IBIT and Fidelity’s FBTC have increasingly turned the US bitcoin spot ETF market into a race between two companies, with smaller issuers often contributing little to daily flows.
The launch would be another step in turning bitcoin into an income product for mainstream investors. The filing shows that the fund is already seeded and has started buying bitcoin and IBIT shares, a sign that it is close to being ready.
