iShares Bitcoin Premium Income ETF (BITA)

The iShares Bitcoin Premium Income ETF (BITA) is a fund from iShares, part of BlackRock, that pairs exposure to bitcoin with an options-based income strategy.

The fund gains bitcoin exposure primarily by holding shares of a spot bitcoin exchange-traded product, such as BlackRock's iShares Bitcoin Trust, rather than holding bitcoin directly. It then writes call options on bitcoin-linked instruments to collect premium income, which it distributes to shareholders on a regular basis.

Selling call options limits the fund's participation in sharp increases in the price of bitcoin, while the fund remains exposed to declines in bitcoin's price, partially cushioned by the premiums received. The approach is designed for those seeking income from bitcoin exposure rather than the full upside of the asset.