BREAKING: BlackRock Bitcoin Premium Income ETF Disloses Fees, Other Details

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BlackRock Bitcoin Premium Income ETF Disloses Fees, Other Details

Highlights

BlackRock amended its iShares Bitcoin Premium Income ETF with the US SEC.
The issuer revealed fees, NAV and seed investment details in the newly updated filing.
The trust purchased 109.9630217 BTC and 90,901 IBIT shares, and wrote 856 options contracts.

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BlackRock has updated its S-1 registration statement for the iShares Bitcoin Premium Income ETF with the US Securities and Exchange Commission. The issuer reveals key details, including sponsor’s fee, total NAV, and seed details, indicating the launch is near.

BlackRock Bitcoin Premium Income ETF Amends S-1 with US SEC

According to a SEC filing on June 10, BlackRock filed 4th amendment to its iShares Bitcoin Premium Income ETF. The proposed premium income ETF plans to list and trade under the ticker BITA on NASDAQ.

The actively managed fund aims to track Bitcoin price performance while generating additional income through a covered call options strategy. It will provide income by writing (selling) call options primarily on IBIT or indices that track spot Bitcoin ETPs.

In the latest filing, BlackRock Bitcoin Premium Income ETF disclosed 0.65% as the sponsor’s fee. The issuer intends to pay the fee with the proceeds from the sale of IBIT shares. The filing also mentioned a potential waiver of fees.

Currently, the trust’s net asset value (NAV) stood at $9.99 million or $49.97 per share. Jane Street Capital and Virtu Financial Singapore are named the Bitcoin trading counterparties for Bitcoin on and off-ramp.

As CoinGape reported earlier, Goldman Sachs filed for Bitcoin Premium ETF with the SEC in April. The fund plans to invest up to 80% of its net assets in investments that provide Bitcoin exposure.

Seed Capital Investment Signals Launch Nears

BlackRock Financial Management, the seed capital investor, purchased 198,000 shares at a per-share price of $50. Total proceeds to the BlackRock Bitcoin Premium Income ETF from the sale of the seed creation baskets were $9,900,000.

On June 9, the trust purchased 109.9630217 BTC and 90,901 IBIT shares, and wrote 856 options contracts with the aggregate proceeds of the seed shares and seed creation baskets.

Goldman Sachs & Co. LLC is the clearing agent for the options. Coinbase Custody Trust Company and Anchorage Digital Bank will serve as the custodian for BlackRock Bitcoin Premium Income ETF.

Moreover, The Bank of New York Mellon is the custodian for the trust’s cash holdings, the custodian for the trust’s securities holdings, and the administrator.

Authorized Participants that are able to conduct creations and redemptions are BofA Securities, Goldman Sachs & Co. LLC, Jane Street Capital, JP Morgan Securities, and Virtu Americas LLC.

BlackRock Bitcoin ETF (IBIT) continues to record massive outflow currently, with $61.6 million in redemption from IBIT on Tuesday. Bitcoin price is trading more than 1% lower at $61,671 today amid millions in outflow from spot Bitcoin ETFs.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.