BlackRock has launched a Bitcoin income ETF BITA, which pays monthly dividends by selling call options

According to The Block, BlackRock has officially launched the iShares Bitcoin Premium Income ETF (ticker: BITA). This product generates monthly option premium income for investors by holding spot Bitcoin and shares of the iShares Bitcoin Trust (IBIT), while selling call options on approximately 25%-35% of its holdings.

Robert Mitchnick, Head of Digital Assets at BlackRock, stated that this move is to meet the demand from clients who wish to gain exposure to Bitcoin while also earning income. BITA provides additional income for investors through its options strategy while retaining most of the upside potential of Bitcoin.

Reports indicate that BITA has an annual fee rate of 0.65%, higher than IBIT's 0.25%. Currently, several institutions, including Goldman Sachs, are also advancing similar Bitcoin income-focused ETF products, indicating a rising demand in the market for the "Bitcoin + income" strategy.