BlackRock Files 8-A for Yield-Bearing Bitcoin ETF

BlackRock submitted a Form 8-A on Thursday to register the iShares Bitcoin Premium Income ETF, a spot bitcoin fund designed to generate income by selling call options. The 8-A registers the security under the Securities Exchange Act of 1934 and typically precedes the start of trading.

BlackRock’s filing follows a fourth amendment to the ETF registration that set a sponsor fee of 0.65%. The company said that fee is lower than those of competing covered-call bitcoin funds. The new fund is intended to provide direct exposure to spot bitcoin while producing income through option premiums.

According to the filing, the fund will write call options primarily on IBIT, BlackRock’s existing spot bitcoin ETF. Writing covered calls brings in premium payments for the fund, which can produce ongoing income for shareholders. Selling calls can limit upside if the price of bitcoin rises sharply, because option buyers can exercise calls and cap gains on the underlying holdings.

Market participants have discussed the likely ticker BITA for the iShares fund. Analyst Eric Balchunas predicted the 8-A filing usually signals an imminent launch and said, “That typically means launch in one week. So if I had to bet I'd say next [Thursday] BITA goes live. We'll see though.”

Other asset managers are pursuing similar products. Goldman Sachs has filed for a premium income bitcoin ETF and has been working with regulators; Eric Balchunas previously estimated that fund could begin trading around July 1.

Form 8-A filings register securities for trading on an exchange. Fund managers commonly submit an 8-A shortly before shares become available, which is why observers treat the filing as an indicator that a fund’s market debut is near.