Bitcoin Income Battle
BlackRock Readies Bitcoin Premium Income ETF for Launch, Igniting Race with Goldman
Anonymous
Key Points
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BlackRock’s filing lists specific custodians and service providers for BITA—Coinbase, Anchorage, and BNY Mellon—positioning them as key infrastructure partners as the ETF approaches launch.
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The SEC disclosures state that BITA’s 0.65% sponsor fee is calculated daily against the fund’s net asset value, and BlackRock “may utilize proceeds from selling IBIT shares to cover the management fee.”
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BlackRock seeded BITA with stated initial capital of 198,000 shares priced at $50 (about $9.9 million). The filing indicates the trust held roughly $9.99 million in net assets, or about $49.97 per share, at the time reported.
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Bloomberg ETF analyst Eric Balchunas said the newest amendment is “probably [a] final” one and characterized the timing as a product race with Goldman: “Game on,” noting Goldman’s expected Premium Income ETF effective date around July 1.
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In the spot Bitcoin ETF market, Coindesk reported that on Jan. 14, 2026, total net inflows were $840.6 million, with IBIT taking $648.4 million and Fidelity’s FBTC adding $125.4 million—together more than 90% of that day’s inflows.
BlackRock filed its fourth and likely final amendment for the iShares Bitcoin Premium Income ETF, ticker BITA, setting a 0.65% sponsor fee and pointing to an imminent launch on Nasdaq, according to Crypto Briefing. Bloomberg ETF analyst Eric Balchunas called the amendment "probably final" and summed up the moment in two words: "Game on."
The urgency is real. Goldman Sachs is expected to launch a competing Bitcoin premium income ETF around July 1, 2026 — making this a flat-out product race between Wall Street's two biggest names in asset management, Value The Markets reported.
How BITA Turns Bitcoin Holdings Into Monthly Income
BITA is an actively managed ETF with a simple core idea. The fund holds shares of BlackRock's own spot Bitcoin ETF, IBIT, then writes — or sells — monthly call options on those holdings. Selling those options generates premium income paid to investors. The trade-off is clear: if Bitcoin surges sharply, call buyers capture most of the upside above the strike price, and BITA investors miss that rally, according to Bloomingbit.
BlackRock seeded the fund with 198,000 shares at $50 each, putting roughly $9.9 million into the trust at launch, Tron Weekly reported. The filing shows the trust held $9.99 million in net assets — about $49.97 per share — at the time reported. Early seed transactions included purchases of nearly 110 BTC and 90,901 IBIT shares, alongside 856 options contracts to kick off the income cycle.
BlackRock's 0.65% Fee Undercuts Every Rival in the Space
The 0.65% sponsor fee is calculated daily against the fund's net asset value. That puts BITA roughly 30 to 34 basis points cheaper than the leading Bitcoin covered-call ETFs, which charge between 0.95% and 0.99%, according to Crypto Briefing. In a strategy where option premiums drive most of the return, a lower fee means more of that income actually reaches shareholders.
The filings also note that BlackRock "may use proceeds from selling IBIT shares to cover the management fee" — meaning the fee can be paid by trimming the fund's own holdings rather than requiring a separate cash outlay. Three major firms back the fund's infrastructure: Coinbase Custody and Anchorage Digital Bank as Bitcoin custodians, and BNY Mellon as cash custodian and trust administrator, Bloomingbit reported.
Goldman Sachs Pushes BlackRock to Move Fast
Goldman Sachs filed for its own Bitcoin premium income ETF on April 14, 2026, with portfolio managers Raj Garigipati and Oliver Bunn set to run the fund. The expected effective date is around July 1, 2026. That gave BlackRock a narrow window to file, get approved, and launch first — which explains why Balchunas flagged this latest amendment as the finishing line, according to Value The Markets.
Analysts see BlackRock's lower fee as a deliberate move to lock in the "income niche" before Goldman can build momentum. Goldman is also reportedly considering a more aggressive option-writing approach — covering 40% to 100% of its exposure — compared to BlackRock's more conservative strategy. That could mean higher yields for Goldman investors, but with greater caps on upside participation.
IBIT Already Dominates Flows as BITA Enters the Market
BITA launches into a market already shaped by extreme concentration. On January 14, 2026, total net inflows into spot Bitcoin ETFs hit $840.6 million. IBIT alone pulled in $648.4 million — about 77% of the day's total. Fidelity's FBTC added $125.4 million. Together, the two funds took more than 90% of all new capital that day, Grafa reported.
That dominance sets a high bar for any new entrant. For BITA, it cuts both ways. The fund writes options on IBIT — a product that already commands massive liquidity and daily volume. That makes the covered-call strategy easier to run at scale. But it also means BITA must convince investors already comfortable with IBIT to accept capped upside in exchange for monthly income — a harder sell if Bitcoin resumes a strong bull run.
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