Getting it 'backwards': 10X Research calls out BlackRock's new volatility BTC ETF - Cryptopolitan

Crypto Insight Summary: * BlackRock has launched BITA, a Bitcoin income ETF that generates yield by selling call options, but critics argue the strategy sacrifices too much upside. * BITA aims to deliver double-digit annual income while retaining roughly 70% of Bitcoin’s upside, targeting institutions seeking cash flow from crypto exposure. * The fund’s covered-call strategy offers downside cushioning and regular income, but investors may underperform Bitcoin during strong rallies. **BlackRock announced that it had launched its iShares Bitcoin Premium Income ETF (BITA). However, crypto research firm 10X Research is not so optimistic about the ETF’s chances of yielding absolute returns in nearly every market scenario.** BITA, which [began trading on the Nasdaq](https://www.cryptopolitan.com/blackrock-expands-bitcoin-etf-lineup/) on June 16, holds a mix of spot Bitcoin and shares of BlackRock’s existing iShares Bitcoin Trust ETF (IBIT). The fund then sells call options against roughly 25% to 35% of the portfolio each month, collecting premiums it distributes as income. Robert Mitchnick, BlackRock’s head of digital assets, reportedly stated that BITA is a “hybrid Bitcoin exposure product.” He estimated the fund retains about 70% of IBIT’s upside while targeting a mid-to-high-teens annual yield. According to 10X Research, only a specific set of conditions makes selling Bitcoin call options a high-probability trade, and for them, the premium collected justifies capping upside only if the conditions are met. However, when these conditions do not align, 10X Research says that investors would be surrendering optionality at a discount instead of generating genuine yield. Tagus Capital reportedly framed the strategy as targeting roughly 15% annual yield while retaining around 70% of Bitcoin’s upside. Crypto Insight Analysis: Direction: Neutral Impact: Minor Impact Horizon: Short-term (1-3 days) Reasoning: The ETF's covered-call strategy limits upside potential and may not attract significant institutional inflows.