BlackRock Nears Bitcoin Premium Income ETF Launch to Compete with Goldman Sachs

Key takeaways

• BlackRock has filed its fourth amendment for its iShares Bitcoin Premium Income ETF.
• The fund will offer investors income by selling call options up to 35% of its holdings monthly.
• BlackRock is in a race with Goldman-Sach for the launch of a covered-call Bitcoin product.

BlackRock has taken another step toward launching its Bitcoin income ETF, filing a fresh amendment for the iShares Bitcoin Premium ETF (BITA). The move comes as the asset management giant appears locked in a race with Goldman Sachs to bring a covered-call Bitcoin product to investors.

BlackRock targets growing demand for Bitcoin income

The latest filing with US Securities and Exchange Commission (SEC) includes a sponsor fee of 0.65%, undercutting some of the largest covered-call Bitcoin ETFs. Unlike traditional spot Bitcoin ETFs, BITA will generate income alongside Bitcoin exposure.

The strategy allows the fund to collect option premiums that can be distributed to investors. In exchange, investors may sacrifice a portion of potential gains during periods of strong rallies.

According to the regulatory filing, BITA intends to write call options on roughly 25% to 35% of its portfolio. Covered-call strategies have become increasingly popular among investors seeking yield from volatile assets.

While not a first-mover in the covered-call bitcoin fund space, BlackRock is betting on its low fees. Presently, YBTC and BTCI, the two largest covered-call bitcoin funds charge 0.95% and 0.99% in sponsor fees, significantly higher than BlackRock’s incoming offering.

This is not the first time BlackRock is leaning on low fees to consolidate its market position in the Bitcoin ETF space. Leaning on the strategy, its iShares Bitcoin Trust has emerged as the sector’s flagship product, dwarfing its rivals in terms of inflows even in bleak market conditions.

Given the success of IBIT and BlackRock’s strong distribution base, experts are tipping BITA to get off the starting block with a bang. 

Source: Trading View

Race with Goldman Sachs accelerates 

BlackRock’s fourth amendment comes as Goldman Sachs is barreling toward the launch of its own Bitcoin-focused income fund. Experts are tipping July 1 as a tentative launch date for the Goldman Sachs ETF, pitting both firms in a heated race for the first to go live.

Bloomberg analyst Eric Balchunas has tipped BlackRock’s BITA to “launch very soon,” terming the filing as “probably final.” 
“My guess is that this is going to launch very soon,” wrote Balchunas on X. “They’re under gun to beat Goldman to market who is going to be effective around July.”

Some analysts are backing BlackRock to edge Goldman Sachs in the race, noting that the filling confirms that the incoming ETF is already seeded and is now acquiring Bitcoin and IBIT shares. Typically, such activity often indicates that a launch is imminent.

If approved, BITA and Goldman Sachs’ offering would represent another milestone in Bitcoin’s evolution from a speculative asset into a mainstream investment product.