Hold our covered calls.
BlackRock was among the first issuers to launch a spot bitcoin ETF back in 2024 with the iShares Bitcoin Trust ETF (IBIT), which went on to become the fastest-growing ETF in history, amassing roughly $51 billion in assets. Now, the world’s largest asset manager believes clients may be able to squeeze even more out of their crypto exposure.
This week, BlackRock launched the iShares Bitcoin Premium ETF (BITA), which offers bitcoin exposure while generating monthly income through an actively managed options strategy. The fund, which charges 65 basis points, maintains most of its bitcoin exposure while writing call options on IBIT equivalent to 25% to 35% of the portfolio.
While a crypto covered call ETF isn’t an entirely new strategy, BlackRock is the first mega issuer to launch one. “BlackRock has been looking to build out its suite of crypto products, and this is a natural evolution,” Todd Rosenbluth, head of research at VettaFi, told ETF Upside. He said a clear sign of momentum in these types of products is the NEOS Bitcoin High Income ETF (BTCI), which launched in October 2024 and has already grown to $1.2 billion in AUM. “There’s advisor and client interest in income-generating vehicles and an interest in risk-taking crypto exposure,” he said.
Who Else Is Doing It?
While a bit more complex than your standard bitcoin ETF, crypto covered call funds have been around just as long:
- Roundhill Bitcoin Covered Call Strategy ETF (YBTC) launched in January 2024, and later that year, introduced its Ether Covered Call Strategy ETF (YETH).
- Greyscale, Global X and Amplify also launched similar funds in 2025.
- Goldman Sachs filed for a bitcoin premium income ETF in April, and it’s expected to launch in early July.
Rosenbluth added that Fidelity and Invesco, both firms with crypto and options-based products, could be next. “There’s a lot of interest in blending those two worlds,” he said.
In addition to IBIT and BITA, BlackRock also has a spot Ethereum ETF and a staked Ethereum fund, the latter of which launched in February. “They still haven’t done anything else in the crypto market,” said James Seyffart, senior analyst at Bloomberg Intelligence. “They’re really sticking to their guns, saying ‘These are the two currencies we want to focus on.’”
Something to Keep in Mind. Like the old saying goes: There’s no free lunch. Advisors should remind clients any income they receive from a covered-call ETF is generated by selling options, which means giving up some potential upside. “As we know, Bitcoin can be explosive in both directions,” Seyffart told ETF Upside. “Theortetically, the income will offset downsides in bear markets, but in rip-roaring bull markets, this would underperform a spot bitcoin ETF.”h crypto and options-based products, could be next. “There’s a lot of interest in blending those two worlds,” he said.