BlackRock Launches Bitcoin Covered Call ETF That Pays Monthly Income

BlackRock's new iShares Bitcoin Premium Income ETF (BITA) holds spot BTC and IBIT shares while selling call options on 25-35% of holdings to generate monthly income, preserving most of bitcoin's upside.

• BITA writes call options on 25-35% of its IBIT holdings, collecting premiums distributed to investors as monthly income
• The fund holds both spot bitcoin and IBIT shares, with IBIT's options market averaging $3.7B in daily volume
• Carries a 0.65% sponsorship fee, higher than IBIT's 0.25% but lower than rival income-generating bitcoin ETFs
• Options on IBIT qualify for 60/40 tax treatment (60% long-term, 40% short-term capital gains)
• BlackRock's Head of Digital Assets says the product was built in response to client demand for bitcoin exposure with income generation

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