BlackRock Rolls Out BITA Bitcoin Income ETF as Crypto Yield Race Intensifies

Bitcoin ETF flows

Key highlights:

  • BlackRock has launched BITA, a Bitcoin Income ETF that generates monthly payouts by selling covered call options.
  • The new fund will combine spot Bitcoin and IBIT exposure.
  • BITA will compete with existing sector players while Goldman Sachs is inching closer to bringing its version to the market.

Wall Street pushes deeper into crypto income products

BlackRock filed an application for BITA with the SEC in January before following up with four separate amendments.

Last week, it filed its final amendment, a move that analysts say teed it up for final approval by the securities regulator.The launch comes amid growing competition among traditional financial firms to create crypto products that generate yield rather than merely track prices. 

BlackRock’s ETF will compete with the NEOS Bitcoin High Income ETF for market share, but despite its first-mover advantage, analysts say its higher expense ratio could see it quickly play second fiddle to BITA.

Meanwhile, Goldman Sachs is racing to roll out its own Bitcoin Income ETF tied to options after it filed an application with the SEC.

Source:: BlackRock Rolls Out BITA Bitcoin Income ETF as Crypto Yield Race Intensifies