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BlackRock's new bitcoin income fund offers cash flow alongside BTC exposure
Key takeaways
- BITA holds spot bitcoin and shares of the iShares Bitcoin Trust (IBIT), then sells call options on roughly 25% to 35% of the portfolio to collect premiums.
- The new fund offering comes as bitcoin struggles to break out of a bear market, trading around $67,000, down about 23% year to date.
- But Jacobs said BlackRock sees several potential audiences for the new fund.
BITA holds spot bitcoin and shares of the iShares Bitcoin Trust (IBIT), then sells call options on roughly 25% to 35% of the portfolio to collect premiums.
The new fund offering comes as bitcoin struggles to break out of a bear market, trading around $67,000, down about 23% year to date. IBIT, which debuted in January 2024, has amassed nearly $49 billion in assets, making it the largest spot bitcoin ETF on the market. The fund has seen significant outflows since the beginning of the year, though, amid lower bitcoin prices and excitement around other asset classes, including the highly anticipated initial public offerings (IPOs) of SpaceX (SPCX) and Anthropic.
But Jacobs said BlackRock sees several potential audiences for the new fund.
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