BlackRock, the asset manager behind the iShares Bitcoin Trust (IBIT), filed a Form 8-A on June 12 for its iShares Bitcoin Premium Income ETF, a step that often comes shortly before an exchange-traded fund begins trading on Nasdaq.

Form 8-A registers securities for exchange listing under the Securities Exchange Act of 1934 and is generally filed near the final stage before trading, signaling the fund could start trading within days.

The fund, ticker BITA, plans to generate income by selling call options on BlackRock’s iShares Bitcoin Trust, or IBIT, which had $49 billion in net assets.

The covered-call strategy collects option premiums but caps gains if bitcoin rises above the strike price, while leaving investors exposed to losses.

ETF analyst Eric Balchunas said the filing usually points to a launch within about a week and that BITA could start trading on June 18.

BlackRock’s filing lists a planned 0.65% fee, below two larger covered-call bitcoin funds that charge 0.95% and 0.99%.

The category is still relatively new. Roundhill’s YBTC was described as the first US-listed bitcoin covered-call ETF and began trading on January 18, 2024, with a gross expense ratio of 0.96%.

🔗 Source: CoinDesk

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