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06/16 13:45Alcista

BlackRock launches new Bitcoin ETF that generates

#World Cup Predictions: 100,000 USDT Daily #BTC Prophet: 20-Day 380 Million HTX Challenge #HTX Creation Challenge — Post and Win 1,500U 💥 BlackRock launches new Bitcoin ETF that generates income using a covered call strategy BITA holds bitcoin and BlackRock’s bitcoin ETF (IBIT) and generates income by selling call options on up to 35% of those IBIT holdings. The fund hits the market ahead of Goldman Sachs’ Bitcoin Premium Income ETF. BlackRock has launched the iShares Bitcoin Premium Income ETF (BITA), an exchange-traded fund designed to provide investors with exposure to bitcoin while generating monthly option premium income. BITA provides bitcoin exposure through direct spot BTC holdings and shares of BlackRock’s flagship iShares Bitcoin Trust ETF IIBIT-0.82%. It also sells call options on roughly 25%-35% of its IBIT holdings to generate income, which is distributed to investors, according to an announcement on Tuesday. "A significant segment of our client base is interested in bitcoin but is also highly focused on yield generation," BlackRock Head of Digital Assets Robert Mitchnick said. "BITA was built in response to that demand, enabling investors to retain the majority of their bitcoin upside exposure while capturing potential income through a convenient exchange-traded structure." The launch builds on BlackRock's highly successful crypto operation, as the issuer of the largest spot BTC and ETH trusts, which have been some of the fastest-growing ETFs on record. BlackRock first filed to launch BITA, which will trade on Nasdaq, in January. It is also part of a trend of bitcoin exchange-traded products that have launched using a covered call option strategy to generate income. While ETFs that track ETH or SOL can generate yield by staking their underlying holdings, the Bitcoin protocol does not offer a native way to generate returns. Notably, Goldman Sachs, a relative newcomer to the crypto ETF space, filed in April to launch its Bitcoin Premium Income
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