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BlackRock Covered-Call Bitcoin ETF Reaches 13.4% Trailing Yield

An active options-based fund provides an income-generating alternative to spot Bitcoin exchange-traded products.

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BlackRock's iShares Bitcoin Premium Income ETF (BITA) has established an initial payout history through an options-writing strategy designed to yield cash distributions from Bitcoin volatility. Unlike the spot iShares Bitcoin Trust (IBIT), which holds physical coins without paying distributions, BITA writes call options against its holdings to pass collected premiums to shareholders.

Following its launch during the summer, the actively managed fund completed three consecutive monthly payments: $0.520369 per share on July 8, $0.799235 on August 7, and $0.657217 on September 8. The distributions amount to a cumulative $1.977 per share.

At a trading price near $64.25 per share, the fund's initial distributions equate to an annualized trailing yield of approximately 13.41%. The structure targets investors seeking regular cash flow from cryptocurrency allocations, though covered-call strategies inherently exchange full price appreciation potential for immediate income.

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