BlackRock Bitcoin Income ETF controversy heats up: strategy design may have flaws, potentially underperforming BTC in the long term

Deep Tide TechFlow News, June 17th, 10x Research analysis pointed out that BlackRock's Bitcoin yield-enhanced exchange-traded fund BITA may have strategic design flaws. Its method of generating returns by selling call options could, in most market environments, cause investors to underperform compared to holding spot Bitcoin or fail to achieve desirable absolute returns.

10x Research believes that BITA executes a fixed-rule monthly call option selling strategy. Whether Bitcoin rises, remains flat, or falls, investors may face unfavorable trade-offs between returns and upside potential; meanwhile, its proposed framework emphasizes "timing and conditional execution," only capturing option premiums when market conditions are favorable. The high volatility of Bitcoin mainly stems from information asymmetry among market participants and a highly marketing-driven market environment. For a long time, many investors have attempted to use systematic strategies to capture this volatility-driven profit, but most have failed to succeed.