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BlackRock Files Fourth Amendment for Bitcoin ETF With Yield

BlackRock is taking another step toward a bitcoin ETF that combines price exposure with yield. The lower fee and competition with Goldman Sachs make the launch even more relevant.

By Zenz van der Wielen
• 2 min read
BlackRock Files Fourth Amendment for Bitcoin ETF With Yield

Key Takeaways

  • BlackRock filed a fourth amendment for its iShares Bitcoin Premium Income ETF.
  • The fund combines spot Bitcoin exposure with covered call strategies to generate yield.
  • The ETF will have a 0.65% management fee and the BITA ticker, and it will compete with similar products.

BlackRock, the world's largest asset manager, has filed a fourth amendment for its planned bitcoin exchange-traded fund (ETF). This move follows earlier changes and brings the fund closer to a possible launch.

New ETF Focused on Yield

The ETF, known as the iShares Bitcoin Premium Income ETF, combines exposure to spot Bitcoin with a mechanism for generating yield. It does this through an actively managed strategy that sells call options on shares of BlackRock's existing iShares Bitcoin Trust (IBIT) and sometimes also on Bitcoin-related ETP indexes. With this covered call approach, investors can collect premium income while still keeping exposure to Bitcoin's price moves.

In the latest filing with the U.S. Securities and Exchange Commission, the fund says it will charge a 0.65% management fee. That is competitive compared with the two biggest similar covered call Bitcoin ETFs, YBTC and BTCI, which charge 0.95% and 0.99%, respectively. According to analysts, that lower fee could be an attractive edge for cost-conscious investors.

Market Position and Competition

BlackRock's existing iShares Bitcoin Trust (IBIT), which trades on Nasdaq under the ticker IBIT, is currently the largest spot Bitcoin fund with about $47.21 billion (€40.9 billion) in assets under management. This gives BlackRock significant influence over Bitcoin price discovery and institutional sentiment around the crypto market.

The new ETF, which will list under the ticker BITA, is seen as a direct competitor to Goldman Sachs, which is expected to bring a similar product to market around July. Market analysts expect BlackRock to launch quickly to get ahead of that competition.

Why This Matters for European Investors

Even though this ETF is aimed at the U.S. market, the launch of a yield-generating Bitcoin fund from a major player like BlackRock could also matter for European investors. It shows the growing interest in structured crypto investment products that aim for both price gains and steadier income. That could point to a broader trend in the crypto market, where investors are looking for diversification and risk management.

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