BlackRock launches bitcoin income ETF that generates monthly cash flow from covered calls

BlackRock's iShares Bitcoin Premium Income ETF (BITA) begins trading, using a covered call strategy on 25-35% of its portfolio to generate monthly income while maintaining bitcoin exposure.

• BITA holds spot bitcoin and IBIT shares, selling call options on 25-35% of the portfolio for option premiums.
• The fund targets income-focused investors, bitcoin holders wanting cash flow, and skeptics of non-yielding assets.
• IBIT has amassed nearly $49 billion in assets since its January 2024 debut.
• Bitcoin trades around $67,000, down 23% year to date, but BlackRock sees growing demand for income products.

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