NewsDialy
BlackRock has introduced a new fund — ticker BITA — that holds both bitcoin and shares of the firm's existing bitcoin ETF, IBIT, then sells call options against a portion of those holdings to generate income for investors.
The covered call approach, a decades-old equity technique now transplanted into crypto, trades away some price upside in exchange for a stream of option premiums.
For income-oriented investors eyeing $BTC exposure, the structure is worth understanding in detail before buying.
How the Covered Call Mechanism Works A covered call strategy means a fund holds an asset and simultaneously sells another party the right to buy that asset at a predetermined price.
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