BlackRock listed BITA, an exchange-traded fund (ETF) that combines spot bitcoin exposure and monthly income, on Nasdaq on June 16 (local time).

According to blockchain media outlet CoinPost, the product’s official name is the iShares Bitcoin Premium Income ETF. The ticker is BITA. It holds bitcoin directly and also includes shares of BlackRock’s spot bitcoin ETF, IBIT. It then sells call options on about 25 to 35 percent of its IBIT holdings to secure premiums, which it distributes to investors.

Fees were also set at a lower level than competing products. The sponsor fee is 0.65 percent, lower than two existing covered-call bitcoin ETFs.

BlackRock cited demand for income as the reason behind the product’s design. Robert Mitchnick (로버트 미치닉), head of digital assets at BlackRock, said many clients are interested in bitcoin while also placing high importance on generating income. He said BITA was designed to meet that demand, adding: "You can earn income in an ETF structure while maintaining most of bitcoin’s upside."

The listing also aligns with BlackRock’s expansion of its spot bitcoin ETF business. BlackRock runs spot trust products for bitcoin and ethereum, and both are the largest in the industry. They have also set records in fund inflows.

The listing process for BITA began in January. BlackRock filed a fourth amended registration statement with the U.S. Securities and Exchange Commission (SEC) on June 10 and then moved into the listing process. That has increased the likelihood of intensified competition in the bitcoin exchange-traded products market, which had been centered on spot ETFs, for strategy products that combine spot holdings with options income.

Competition is also taking shape quickly. Goldman Sachs filed an application with the SEC in April for the Goldman Sachs Bitcoin Premium Income ETF, but its structure differs from BlackRock’s product. The Goldman Sachs product secures indirect bitcoin exposure through a spot bitcoin ETF and options linked to it. BITA, by contrast, is differentiated by holding bitcoin directly.

Against that backdrop, the market is watching whether demand for income-focused spot bitcoin ETFs will translate into actual inflows. BlackRock has highlighted that clients want income generation alongside bitcoin investment, and BITA has become one of the first responses to package that demand in a listed ETF format.

Have you met BITA yet? BITA is a convenient way to gain bitcoin exposure with the potential for monthly income and reduced volatility relative to spot exposure. Get started and view a prospectus ⏩ https://t.co/l748Nf9KO9 Ask us your bitcoin questions on Reddit at r/iShares.… pic.twitter.com/aX7lfH7yL0