BlackRock has expanded disclosures for its proposed Bitcoin Premium Income ETF, reporting $9.99 million in net assets and a covered call strategy tied to IBIT.
summary
- BlackRock updated its Bitcoin Premium Income ETF filing, revealing a 0.65% sponsorship fee and $9.99 million in net assets.
- The proposed BITA Fund plans to generate income by selling covered call options on IBIT and related Bitcoin ETF indices.
- The initial capital transactions included the purchase of approximately 110 bitcoins, 90,901 shares of IBIT stock, and the writing of 856 options contracts.
According to June 10 Deposit With the US Securities and Exchange Commission, BlackRock has filed a fourth amended S-1 registration statement for the iShares Bitcoin Premium Income ETF, which is expected to trade on the Nasdaq under the symbol BITA.
The filing describes an actively managed strategy designed to combine exposure to Bitcoin with options-based income generation. According to BlackRock, the fund plans to write covered call options primarily on Bitcoin ETF spot and IBIT stocks, as well as indices tied to Bitcoin exchange-traded products.
New details included in the amended filing show that the fund’s sponsorship fee has been set at 0.65%. BlackRock said the fee is expected to be paid using proceeds generated from the sale of IBIT shares, while some fee waivers may also be available under certain circumstances.
Interest in Bitcoin income-focused ETFs is growing among large financial institutions. Ditto I mentioned By crypto.news Goldman Sachs filed paperwork in April for a Bitcoin Premium ETF that can invest up to 80% of its net assets in instruments that provide exposure to bitcoin.
The initial capital has been disclosed
New disclosures in the filing provide a clearer view of the fund’s initial setup. BlackRock Financial Management, identified as the seed capital investor, purchased 198,000 shares at $50 per share, generating $9.9 million for the trust.
As detailed in the registration statement, the Fund maintains a net asset value of approximately $9.99 million, equivalent to $49.97 per share. On June 9, the fund acquired 109.9630217 Bitcoin and 90,901 shares of IBIT while simultaneously writing 856 options contracts using the proceeds of initial capital transactions.
Many large financial institutions have been assigned operational roles within the product. According to the filing, Goldman Sachs & Co. LLC will act as a clearing agent for the options activity, while Coinbase Custody Trust Company and Anchorage Digital Bank will serve as custodians for the Bitcoin holdings.
The filing also names the Bank of New York Mellon as the administrator and custodian of the trust’s holdings of cash and securities. The authorized participants responsible for creating and redeeming shares are BofA Securities and Goldman Sachs & Co. LLC, Jane Street Capital, JP Morgan Securities, and Virtu Americas LLC.
Additionally, Jane Street Capital and Virtu Financial Singapore are listed as Bitcoin trading counterparties for both onshore and offshore transactions.
BlackRock adds new ETFs
While the Bitcoin Income Fund continues through the registration process, BlackRock has also expanded its ETF lineup in other markets.
As recently reported by crypto.news, an asset manager Fired iShares Space Technologies UCITS ETF in the UK and Europe under the ticker STAR. The fund tracks the STOXX Global Space Satellites and Drones Index and provides exposure to publicly listed companies operating in rockets, satellites, drones and related supply chain businesses, BlackRock said.
Meanwhile, BlackRock’s flagship Bitcoin ETF remained under pressure from redemptions. According to Data From SoSoValue, IBIT recorded $61.6 million in recoveries on Tuesday. Bitcoin (Bitcoin) traded near $62,206, up 1.4% on the day despite renewed geopolitical tensions after US President Donald Trump. to caution He said Iran would “pay the price” for delaying negotiations and suggested ordering more strikes if the talks failed.
