BlackRock has taken significant steps toward implementing its Bitcoin premium income strategy by filing for a ticker for its forthcoming iShares Bitcoin Premium Income ETF. Bloomberg ETF analyst Eric Balchunas conveyed via X that the fund will be traded under the ticker “$BITA.” He further noted that BlackRock has submitted an amended S-1 registration statement for this product, characterizing it as a continuation of its current Bitcoin ETF offerings.
Balchunas mentioned that a management fee has yet to be established, estimating it to be around 38 basis points. An official launch date has not been disclosed.
This proposed ETF aims to integrate direct exposure to Bitcoin (BTC) with an income-generating options strategy.
According to previous SEC filings, the fund is structured to hold BTC-linked assets, including shares of BlackRock’s spot Bitcoin ETF, IBIT, while writing covered call options on these holdings. This approach seeks to generate “premium income” while simultaneously tracking the price performance of Bitcoin, net of expenses.
The fund represents a component of BlackRock’s broader strategy to diversify institutional BTC offerings, moving beyond passive exposure to yield-oriented strategies. This initiative aligns with the increasing demand from investors who desire BTC exposure along with portfolio income akin to traditional equity option-writing funds.
If granted approval and subsequently launched, this ETF would enhance the rapidly evolving Bitcoin ETF landscape in the United States, where asset managers are increasingly competing by focusing on structural and yield features rather than solely on spot exposure.
Morgan Stanley Enters the Bitcoin ETF Arena
Earlier this year, Morgan Stanley has progressed toward launching its spot Bitcoin ETF, dubbed ‘MSBT’, following a listing notice from the New York Stock Exchange. Should it receive approval, MSBT would become the first spot Bitcoin ETF introduced by a major U.S. bank, rather than an asset management firm.
The trust is designed to offer direct BTC exposure through brokerage accounts by maintaining custody of Bitcoin assets, with shares directly corresponding to the spot price.
Coinbase Custody will safeguard these assets in cold storage, while BNY Mellon will manage administration, transfer agency services, and cash operations. The structure is intended to align with existing spot BTC ETFs in the United States.
Shortly after the listing notice, filings revealed a competitive fee structure, with MSBT expected to launch at a 0.14% annual expense ratio, effectively undercutting competitors such as BlackRock’s iShares Bitcoin Trust, which has an approximate fee of 0.25%. This lower fee structure could facilitate increased adoption within Morgan Stanley’s wealth management platform, which governs trillions in client assets and supports thousands of financial advisors.
The launch of the fund is projected to consist of approximately 50,000 shares, valued at around $1 million. This initiative coincides with a notable influx of capital into U.S. spot Bitcoin ETFs, which have collectively attracted tens of billions since their introduction, while adoption remains a crucial avenue for growth.
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