Helene Braun
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BlackRock has disclosed a 0.65% management fee for its proposed Bitcoin Premium Income ETF (BITA) in what ETF analysts expect could be the fund’s final pre-launch filing. The fee is higher than BlackRock’s spot bitcoin ETF (IBIT), but below the fees charged by the two largest covered-call ETFs, which currently charge 0.95% and 0.99%, respectively.
The filing suggests BITA could begin trading soon as BlackRock races to bring the product to market ahead of a competing offering from Goldman Sachs, which is expected to become effective around July 1, as reported by Bloomberg Intelligence ETF analyst Eric Balchunas.
The fund is designed to generate income by selling options linked to bitcoin exposure, a strategy that typically produces yield but can limit upside participation if bitcoin rallies sharply. Balchunas stated a key variable for investors will be how aggressively BlackRock writes options and how much potential appreciation it is willing to sacrifice to pursue income. Existing bitcoin income funds employ widely different approaches, with yields ranging from roughly 10% for some products to more than 100% for others, highlighting the tradeoff between income generation and exposure to bitcoin’s price gains.
