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BlackRock BITA option income offset about 28.7% of crypto losses
In BITA’s first operating period, the fund recorded $344,849 of option gains against a combined $1,199,847 in unrealized losses on Bitcoin and IBIT, leaving a $860,335 net asset decrease from operations through June 30.
BlackRock’s iShares Bitcoin Premium Income ETF, BITA, used written options to help cushion losses during its first operating period, though the protection was incomplete, according to CryptoSlate.
BITA reported $79,073 in realized gains and $265,776 in unrealized appreciation from options, totaling $344,849. Those option results offset about 28.7% of BITA’s combined unrealized losses of $782,203 on Bitcoin and $417,644 tied to iShares Bitcoin Trust ETF, IBIT, for a combined $1,199,847.
Despite the option gains, BITA saw a $860,335 decrease in net assets from operations through June 30, including a $5,337 net investment loss. The fund also disclosed that its financial-statement NAV per share fell 3.08%, from $50 on the April 21 seed date to $48.46 on June 30.
CryptoSlate reports that BITA’s covered-call approach targets written-call notional equal to 25% to 35% of NAV, with premiums intended to offset downside while surrendering gains above option exercise prices. The strategy’s longer-term trade-off cannot be measured from the roughly three-week public trading window covered by the filing.
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