From 24/7 Wall St. · Ryne Mauck · · 1m 10s
IBIT Yield Swap for Bitcoin Investors
IBIT holders can now earn 13.41% monthly yield with BlackRock's BITA fund.
In brief
IBIT holders can now earn 13.41% monthly yield with BlackRock's BITA fund. IBIT investors who need income can switch to BlackRock's BITA for monthly distributions without selling Bitcoin. Originally reported by 24/7 Wall St..
IBIT's Bitcoin Exposure
IBIT provides cleanest largest cheapest bitcoin exposure without cash flow.
BlackRock Launches BITA
Blackrock launched a companion fund converting bitcoin volatility into monthly income.
BITA Distribution History
bita paid $0.520369 on july 8 $0.799235 on august 7 and $0.657217 on september 8.
BITA Yield Calculation
bita's trailing yield is 13.41 percent on a share price near $64.25.
BITA's Income Strategy
bita writes call options against bitcoin exposure to generate monthly distributions.
Tradeoff in Bull Markets
in sharp bull moves ibit outperforms bita by capturing more bitcoin upside.
Tax Implications
distributions may include return of capital affecting cost basis in taxable accounts.
BITA for Income Investors
bita offers monthly cash flow for investors who want bitcoin without selling coins.
When to Switch
switch ibit to bita in tax-advantaged accounts to avoid capital gains and capture income.
What it means
IBIT investors who need income can switch to BlackRock's BITA for monthly distributions without selling Bitcoin.
