BlackRock has launched the iShares Bitcoin Premium Income ETF (NASDAQ: BITA), an exchange-traded product designed to provide bitcoin price exposure while generating monthly income through options premiums.

BITA gains bitcoin exposure through a combination of spot bitcoin and the iShares Bitcoin Trust ETF (NASDAQ: IBIT). The fund aims to write call options on IBIT representing approximately 25% to 35% of the portfolio, with the resulting premiums distributed to investors monthly.

The structure holds bitcoin and IBIT directly, while selling call options on IBIT that qualify as section 1256 contracts, which are subject to a blended 60/40 tax rate under U.S. tax rules. BlackRock states the partnership structure may also allow capital losses to be passed through to investors.

"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 builds on BlackRock's existing digital assets lineup, which includes IBIT, the iShares Ethereum Trust ETF (NASDAQ: ETHA), and the iShares Staked Ethereum Trust ETF (NASDAQ: ETHB). BlackRock's premium income ETF platform holds over $3 billion in client assets. IBIT options average approximately $3.7 billion in daily trading volume, according to Bloomberg, Markit, and OCC data as of June 1, 2026.

According to the press release, BlackRock oversees more than $130 billion in assets across digital asset ETPs, tokenized liquidity funds, and stablecoin reserve management as of June 2, 2026. The firm claims its iShares unit captured approximately 90% of industry flows into U.S.-listed digital asset ETPs in 2025, based on Bloomberg and BlackRock calculations.

The iShares Trusts are not registered as investment companies under the Investment Company Act of 1940 and are not subject to the same regulatory requirements as mutual funds or registered ETFs.