BlackRock updates filing for Bitcoin Income ETF with covered calls

BlackRock has expanded disclosures for its proposed Bitcoin Premium Income ETF, reporting $9.99 million in net assets and a covered-call strategy tied to IBIT.

Summary

• BlackRock updated its Bitcoin Premium Income ETF filing, disclosing a 0.65% sponsor fee and $9.99 million in net assets.
• The proposed BITA fund plans to generate income by selling covered call options on IBIT and related Bitcoin ETF indexes.
• Seed capital transactions included the purchase of nearly 110 BTC, 90,901 IBIT shares, and the writing of 856 options contracts.

According to a June 10 filing with the U.S. Securities and Exchange Commission, BlackRock submitted a fourth amended S-1 registration statement for the iShares Bitcoin Premium Income ETF, which is expected to trade on Nasdaq under the ticker BITA.

The filing outlines an actively managed strategy designed to combine Bitcoin exposure with options-based income generation. According to BlackRock, the fund plans to write covered call options primarily on shares of its spot Bitcoin ETF, IBIT, as well as on indexes linked to spot Bitcoin exchange-traded products.

New details included in the amended filing show that the fund’s sponsor fee has been set at 0.65%. BlackRock stated that the fee is expected to be paid using proceeds generated from the sale of IBIT shares, while certain fee waivers may also be available under specific circumstances.

Interest in Bitcoin income-focused ETFs has been growing among large financial institutions. As previously reported by crypto.news, Goldman Sachs filed paperwork in April for a Bitcoin Premium ETF that could invest up to 80% of its net assets in instruments providing Bitcoin exposure.

Seed capital revealed

Fresh disclosures in the filing provide a clearer view of the fund’s initial setup. BlackRock Financial Management, identified as the seed capital investor, purchased 198,000 shares at $50 each, generating $9.9 million for the trust.

As detailed in the registration statement, the trust held a net asset value of approximately $9.99 million, equal to $49.97 per share. On June 9, the trust acquired 109.9630217 Bitcoin and 90,901 shares of IBIT while simultaneously writing 856 options contracts using proceeds from the seed capital transactions.

Several large financial institutions have been assigned operational roles within the product. According to the filing, Goldman Sachs & Co. LLC will act as the clearing agent for options activity, while Coinbase Custody Trust Company and Anchorage Digital Bank will serve as custodians for Bitcoin holdings.

The filing also names The Bank of New York Mellon as the administrator and custodian for the trust’s cash and securities holdings. Authorized participants responsible for creating and redeeming shares include BofA Securities, Goldman Sachs & Co. LLC, Jane Street Capital, JP Morgan Securities, and Virtu Americas LLC.

Jane Street Capital and Virtu Financial Singapore have additionally been listed as Bitcoin trading counterparties for both on-ramp and off-ramp transactions.

BlackRock adds new ETFs

While the Bitcoin income fund continues through the registration process, BlackRock has also expanded its exchange-traded fund lineup in other markets.

As reported by crypto.news, the asset manager recently launched the iShares Space Technologies UCITS ETF in the United Kingdom and Europe under the ticker STAR. BlackRock said the fund tracks the STOXX Global Space Satellites and Drones Index and provides exposure to publicly listed companies involved in rockets, satellites, drones, and related supply-chain businesses.

Meanwhile, BlackRock’s flagship spot Bitcoin ETF remained under pressure from redemptions. As per data from SoSoValue, IBIT recorded $61.6 million in redemptions on Tuesday. Bitcoin (BTC) traded near $62,206, up 1.4% on the day despite renewed geopolitical tensions after U.S. President Donald Trump warned that Iran would “pay the price” for delaying negotiations and suggested further strikes could be ordered if talks fail.