TLDR
- BlackRock sets 0.65% fee for planned BITA Bitcoin income ETF
- BITA will use covered calls tied mainly to BlackRock’s IBIT ETF
- BlackRock reveals $9.99M net assets and initial Bitcoin holdings
- Goldman Sachs and BlackRock race toward Bitcoin income ETF launches
- Coinbase, Anchorage, and BNY Mellon land key roles in BITA setup
BlackRock has moved its iShares Bitcoin Premium Income ETF closer to launch by setting a 0.65% sponsor fee. The proposed fund, expected to trade on Nasdaq as BITA, will use covered calls tied mainly to IBIT. The latest filing also disclosed seed capital, Bitcoin holdings, IBIT shares, and key operating partners.
BlackRock Sets 0.65% Fee for BITA
BlackRock disclosed the fee in a fourth amended S-1 filed with the U.S. Securities and Exchange Commission. The fund will accrue the sponsor fee daily based on net assets. BlackRock also said it may pay the fee using proceeds from IBIT share sales.
BITA will follow an actively managed structure and seek premium income through options activity. The fund plans to write monthly covered call options mainly on BlackRock’s iShares Bitcoin Trust. It may also use options tied to indexes linked to spot Bitcoin exchange-traded products.
The structure gives the product Bitcoin exposure while adding an income element through option premiums. covered calls can limit upside when Bitcoin or IBIT rises sharply. That tradeoff places BITA inside a growing field of Bitcoin income products.
Seed Capital and Holdings Revealed
The filing showed that BlackRock Financial Management acted as the seed capital investor. It bought 198,000 shares at $50 each and generated $9.9 million for the trust. The trust reported about $9.99 million in net assets, or $49.97 per share.
On June 9, the trust acquired 109.9630217 Bitcoin and 90,901 shares of IBIT. It also wrote 856 options contracts using proceeds from the seed capital transactions. These disclosures gave the market a clearer view of BITA’s first portfolio setup.
Several major firms will support the fund’s daily operations and trading process. Goldman Sachs will serve as clearing agent for options activity. Coinbase Custody and Anchorage Digital Bank will custody Bitcoin, while BNY Mellon will handle cash and securities.
Bitcoin Income ETF Race Builds
The filing comes as large financial firms expand Bitcoin-linked income products. Goldman Sachs filed in April for a competing Bitcoin Premium Income ETF. That fund may allocate up to 80% of net assets to instruments with Bitcoin exposure.
Bloomberg analyst Eric Balchunas said BlackRock may launch BITA soon after the latest amendment. He also noted that Goldman’s rival product could become effective around July 1. The timing places both firms in a race for the next Bitcoin income ETF launch.
BlackRock enters the category after building a dominant position through IBIT. Still, IBIT faced pressure after recording $61.6 million in redemptions on Tuesday. Bitcoin traded near $62,206, up 1.4%, as market sentiment absorbed renewed geopolitical tension.
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