BlackRock Expands Digital Assets Offerings with Bitcoin Premium Income ETF
Combines Long-Term Bitcoin Growth with Option Income Potential
BlackRock today announced the launch of the iShares Bitcoin Premium Income ETF (NASDAQ:BITA), an exchange-traded product (ETP) designed to provide investors with bitcoin upside participation while generating monthly option premium.
The iShares Trusts are not an investment company registered under the Investment Company Act of 1940, and therefore are not subject to the same regulatory requirements as mutual funds or ETFs registered under the Investment Company Act of 1940.
BITA gains bitcoin exposure through a combination of spot bitcoin and the iShares Bitcoin Trust ETF (IBIT) – the world's largest and most-traded bitcoin ETP.1 BITA aims to write call options on IBIT representing approximately 25% to 35% of the portfolio, generating option premiums that may be distributed to investors each month. This approach preserves the majority of BITA's bitcoin exposure, allowing investors to participate in market movements while potentially producing income.
"A significant segment of our client base is interested in bitcoin but is also highly focused on income generation," said Robert Mitchnick, Head of Digital Assets at BlackRock. "BITA was built in response to that demand, enabling investors to retain the majority of their bitcoin upside exposure while capturing potential income through a convenient exchange-traded structure."
BITA is designed with quality in mind. BITA's differentiated structure holds bitcoin (and IBIT) directly for tax-efficient growth2 while selling options on IBIT that benefit from lower 60/40 taxation3 as section 1256 contracts.4 Investors may also benefit from certain tax efficiencies inherent in the partnership structure, including the ability to pass through capital losses to offset other investment gains and the character of both short-term and long-term gains as capital gains.
Delivering Greater Investor Choice Backed by iShares' Scale and Quality
BITA builds on two established pillars of BlackRock's platform: its digital assets product suite – including IBIT, the iShares Ethereum Trust ETF (ETHA), and the iShares Staked Ethereum Trust ETF (ETHB) – and its premium income offerings, with over $3 billion in client assets across ETFs registered under the Investment Company Act of 1940 such as the iShares U.S. Large Cap Premium Income Active ETF (BALI) and the iShares Nasdaq Premium Income Active ETF (BALQ). BITA leverages the scale and liquidity of IBIT and its options market, which averages approximately $3.7 billion in daily trading volume and ranks among the top 1% of all options products.5
"BITA applies BlackRock's proven options capabilities to our established digital assets platform – purpose-built for investors with long-term bitcoin conviction who also want to put that allocation to work," said Jessica Tan, Head of Americas for Global Product Solutions at BlackRock. "Delivering a strategy like BITA at scale requires deep ETP and options expertise, rigorous risk management, and scalable infrastructure – capabilities that iShares delivers every day."
BlackRock is a leading asset manager in the digital asset ecosystem, overseeing more than $130 billion in assets across digital asset ETPs, tokenized liquidity funds, and stablecoin reserve management.6 iShares captured approximately 90% of industry flows into U.S.-listed digital asset ETPs in 2025.7
About BlackRock
BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock
About iShares
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of more than 1,700 exchange traded funds (ETFs) and approximately $5.5 trillion in assets under management as of March 31, 2026, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.
Disclosure
This information must be preceded or accompanied by a prospectus for BITA, IBIT, ETHA and ETHB. Investors should read and consider the relevant prospectus carefully before investing.
The Trust is not a commodity pool for purposes of the Commodity Exchange Act. Before making an investment decision, you should carefully consider the risk factors and other information included in the prospectus.
Investing involves a high degree of risk, including possible loss of principal. An investment in the Trust is not suitable for all investors, may be deemed speculative and is not intended as a complete investment program. An investment in Shares should be considered only by persons who can bear the risk of total loss associated with an investment in the Trust.
Investing in digital assets involves significant risks due to their extreme price volatility and the potential for loss, theft, or compromise of private keys. The value of the shares is closely tied to acceptance, industry developments, and governance changes, making them susceptible to market sentiment. Digital assets represent a new and rapidly evolving industry, and the value of the Shares depends on their acceptance. Changes in the governance of a digital asset network may not receive sufficient support from users and miners, which may negatively affect that digital asset network's ability to grow and respond to challenges Investing in the Trust comes with risks that could impact the Trust's share value, including largescale sales by major investors, security threats like breaches and hacking, negative sentiment among speculators, and competition from central bank digital currencies and financial initiatives using blockchain technology. A disruption of the internet or a digital asset network would affect the ability to transfer digital assets and, consequently, would impact their value. There can be no assurance that security procedures designed to protect the Trust's assets will actually work as designed or prove to be successful in safeguarding the Trust's assets against all possible sources of theft, loss or damage.
The Trust's use of derivatives may decrease its returns, increase volatility, and expose it to additional operational and counterparty risks—that is, the risk that another party in a transaction may fail to meet their contractual obligations. Losses may arise from derivative holdings due to limited liquidity in secondary markets and unexpected market changes. Writing covered call options on IBIT shares limits the Trust's gains above the option exercise price. The Trust remains exposed to losses below the exercise price, as premiums may not cover declines tied to bitcoin or IBIT volatility. Additionally, the Trust could be impacted by declining share values, restrictions on trading options, and other risks linked to options strategies.
Trading shares of ETPs may result in brokerage commissions and tax consequences. This material is provided for educational purposes only and does not constitute investment advice. The information contained herein is based on current tax laws, which may change in the future. BlackRock cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. The information provided in this material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.
Shares of the Trust are not deposits or other obligations of or guaranteed by BlackRock, Inc., and its affiliates, and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency. The sponsor of the trust is iShares Delaware Trust Sponsor LLC (the "Sponsor"). BlackRock Investments, LLC ("BRIL"), assists in the promotion of the Trust. The Sponsor and BRIL are affiliates of BlackRock, Inc.
©2026 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK and iSHARES are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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1 Based on AUM and 20-day average trading volume. Source: Bloomberg, as of May 29, 2026.
2 Holding spot bitcoin may allow more appreciation to remain unrealized at the fund level compared to synthetic implementations that use options or futures for the long exposure.
3 Refers to blended tax rate where 60% of gains are taxed at lower long-term rates and 40% at short-term rates.
4 Refers to exchange-traded derivatives that qualify for blended tax treatment under U.S. tax rules.
5 Bloomberg, Markit, OCC, as of June 1, 2026. The average daily trading volume of IBIT options over the past 12 months is approximately $3.7 billion.
6 BlackRock, as of June 2, 2026.
7 Bloomberg and BlackRock calculations, as of December 31, 2025.
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Joanna Yau; Joanna.Yau@blackrock.com