BlackRock Just Introduced a New Way to Invest in Bitcoin. But Is This New ETF a Buy?

BlackRock launched the iShares Bitcoin Premium Income ETF (BITA) on June 9, using a covered call strategy to generate a 12.5% annual yield via $0.52-per-share distributions starting July 8, though upside gains are capped. The ETF holds Bitcoin and the iShares Bitcoin Trust, differing from BlackRock’s 2024 iShares Bitcoin Trust by prioritizing income over pure price tracking. With a 0.65% expense ratio, it targets investors seeking yield amid Bitcoin’s 51% decline from its record high.