BlackRock Launches Bitcoin Premium Income ETF Utilizing Covered Call Strategy
BlackRock has introduced a new exchange-traded fund (ETF) named BITA, which is designed to generate income. The BITA fund holds both physical Bitcoin and BlackRock’s existing spot Bitcoin ETF, IBIT. Its income generation strategy involves selling call options on up to 35% of its IBIT holdings.
BlackRock has announced the launch of a new exchange-traded fund (ETF) known as BITA. This fund is structured to provide income to investors through a specific investment strategy.
BITA's portfolio is composed of direct holdings in Bitcoin, as well as shares of BlackRock’s other Bitcoin ETF, IBIT. The mechanism for generating income within the BITA fund is achieved by employing a covered call strategy. This involves selling call options on a portion of its IBIT holdings.
Specifically, the covered call strategy is applied to up to 35% of BITA's IBIT assets, aiming to generate additional income from these holdings.
(Source: The Block Crypto)
