iShares launches BITA, a new bitcoin income ETF using covered calls to generate income.

iShares has introduced the Bitcoin Premium Income ETF (BITA), a new bitcoin income ETF that uses covered call strategies to generate income by selling call options on its spot bitcoin ETF (IBIT). This approach transforms bitcoin, which traditionally produces no income, into an asset that can provide premium income to investors. BITA charges a 65 basis point fee, lower than the 99 basis points charged by the NEOS Bitcoin High Income ETF (BTCI), a similar product that has seen strong inflows and a 26.7% distribution rate. While BTCI benefits from being first to market with a proven track record, BITA aims to compete in this growing niche of bitcoin income ETFs, offering investors another option to earn income from bitcoin exposure.