BlackRock Nears Bitcoin Income ETF Launch as Race With Goldman Sachs Heats Up

Asset manager BlackRock has reached a critical milestone in its plan to launch a new Bitcoin income ETF. The platform has reportedly filed its fourth amendment for the iShares Bitcoin Premium Income ETF (BITA).

Notably, the Bitcoin income ETF will trade on Nasdaq. As per the SEC filing, the ETF could generate regular income from Bitcoin exposure. The timing of this move is also noteworthy as it comes as part of BlackRock’s growing competition with other Wall Street giants like Goldman Sachs.

BlackRock Files Fourth Amendment for Bitcoin Income ETF

According to an SEC filing, investment firm BlackRock filed its fourth amendment for its Bitcoin income ETF. This marks a major step in its journey towards launching a Bitcoin ETF that generates income.

Source: SEC

Upon approval, the Bitcoin income ETF will trade on Nasdaq under the ticker BITA. The filing states that the fund will trade with a 0.65% fee. The fund is designed in a unique manner that allows investors to earn regular income from BTC. For that, the investors should hold spot Bitcoin and BlackRock’s existing IBIT ETF. By selling options on these holdings, investors can generate premium income.

In detail, a call option allows the buyer to purchase shares at a fixed rate. In return, the fund gets a fee called a premium. This premium, in turn, becomes the income for the investors. The fund sells call options, usually on 25%-35% of its holdings every month.

However, this strategy comes with a disadvantage. Gains could be limited if the Bitcoin price rises sharply. Investors receive steady income only by giving up some of the potential upside.

BlackRock and Goldman Sachs Race to Launch Bitcoin Income ETF

It is worth noting that BlackRock’s Bitcoin income ETF is expected to be a key rival to Goldman Sachs’ Bitcoin Premium Income ETF. For this reason, analysts like Eric Balchunas expect the launch of BITA to happen soon. The firm intends to stay ahead of competitors like Goldman Sachs.

As noted by Balchunas, the Bitcoin ETF by Goldman Sachs is expected to be launched as soon as July 1, 2026.

Recently, Goldman Sachs filed to launch its Bitcoin income ETF, which will earn income similar to BlackRock’s fund. Both funds follow the same structure. The funds will offer BTC exposure and help earn regular income, but will limit gains during Bitcoin price surges.

These moves come as investors continue to pull funds out of the Bitcoin spot ETFs. As highlighted by reporter Wu Blockchain, Bitcoin ETFs recorded a massive outflow of $214 million on June 10. Over the past month, the funds have only seen positive flows on three days, according to Glassnode.

Source: Glassnode

Interestingly, there are also other competitors in the Bitcoin income ETF market. Other ETF issuers like YieldMax and NEOS have already launched Bitcoin income ETFs with expense ratios of 0.95% and 0.99%, respectively.