BlackRock Launches a Bitcoin Income ETF, While Congress Pushes Back Against a CBDC

BlackRock keeps finding new ways to package Bitcoin for Wall Street. This week, the asset manager launched a Bitcoin ETF designed to pay investors an income.

On the regulatory side, Congress advanced a bill that would stop the Federal Reserve from issuing a digital dollar through 2030, while Hungary decided to undo the harsh rules it brought in last year.

TL;DR

• BlackRock launched BITA, a Bitcoin income ETF that seeks to pay monthly income through a covered call strategy.

• Congress agreed to advance a housing bill that would bar the Federal Reserve from issuing a central bank digital currency (CBDC) through the end of 2030.

• Hungary plans to reverse the rules that put crypto traders and service providers at risk of jail time.

BlackRock Launches a Bitcoin Income ETF 🏦

I've written before about how spot Bitcoin ETFs have opened the door for Wall Street and the broader investment community to gain regulated access to Bitcoin.

Since the first spot ETF launched about two and a half years ago, investment firms have launched more ETFs and similar products to keep up with the demand from investors who want to add Bitcoin exposure to their portfolios.

This week, BlackRock listed the iShares Bitcoin Premium Income ETF (BITA) on Nasdaq, which seeks to pay a monthly income instead of just tracking the price of Bitcoin.

The fund gains Bitcoin exposure through a combination of spot Bitcoin and BlackRock’s IBIT, then writes covered call options on roughly a quarter to a third of the portfolio to generate option premiums that may be distributed monthly to holders.

It's a covered call strategy that traditional equity income funds have used for decades. BlackRock is now applying it to Bitcoin.

While the price of Bitcoin may not be looking that rosy at the moment, the people on Wall Street sure are churning out new BTC products. It’s almost as if they’d believe the demand for Bitcoin will be bigger in the future, and they want their piece of the pie.

Congress Is Trying to Keep the U.S. From Issuing a CBDC Until 2030 📋

If you read this newsletter regularly, you know I’m a staunch Bitcoin advocate and fiercely opposed to CBDCs.

A CBDC is a central bank digital currency, which is essentially government-issued money on a blockchain that the state could monitor in real time, freeze on a whim, expire when it wants you to spend, or program to restrict what you're allowed to buy.

In many ways, CBDC is the polar opposite of Bitcoin, which is open and permissionless, with no single entity controlling it.

The good news for those concerned about a CBDC in the US is that this week, House and Senate negotiators agreed to advance the 21st Century ROAD to Housing Act, which includes a provision to bar the Federal Reserve from issuing a CBDC, or any digital asset much like one, through December 31, 2030.

Yes, an anti-CBDC measure ended up inside a housing bill. That's a common way to move policy in Washington, by attaching it to a larger package that already has support.

Just to be clear, this isn't law yet. The updated text goes back to the House for a vote when lawmakers return on June 23, and the ban would be temporary. However, I’m happy to see pushback against a potential US CBDC. Adopting open monetary systems like Bitcoin is the way forward.

Hungary Reverses One of the EU’s Strictest Crypto Laws 👀

In 2025, Hungary’s previous government introduced rules that required approved validation for crypto conversions. Every trade needed a compliance certificate from a licensed validator. Without one, you faced criminal charges, with potential prison time rising in line with the size of the transaction. 

The effect was immediate. Platforms reduced or stopped their services, trading activity dropped significantly, and the framework became one of the strictest in the EU.

I know, sounds crazy!

But the good news is that Hungary's new government now says it will reverse those rules and remove the criminal liability for ordinary crypto activity. 

Decriminalizing crypto trading isn't the same as establishing clear rules, so Hungary still needs a framework that aligns with the EU's general approach. But moving from prison threats to more open participation in the digital asset market is a step in the right direction, in my humble opinion.

Elsewhere in Bitcoin 📖

A quick look at what else has been happening in Bitcoin:

• Goldman Sachs is preparing to launch a Bitcoin income ETF

• The CLARITY Act continues to move toward a full Senate floor vote

• The SEC named digital assets a top priority in its latest multi-year strategic plan

Your fellow stacker in sats,

Patrick Lowry

PS: If you want to see how the value of goods and services changes when priced in Bitcoin, check out the Samara Bitcoin CPI. It might give you a new perspective on holding Bitcoin on your company's balance sheet or just as an individual.

Disclaimer: The opinions expressed in this newsletter are solely those of the author and do not necessarily represent the views of any associated company. This newsletter is for educational and informational purposes only and should not be construed as investment, financial, or any other professional advice. Nothing here is a solicitation, offer, or recommendation to buy or sell any asset or to use any service. Investing in cryptocurrencies is highly speculative and carries a significant risk of substantial financial loss, so you must conduct your own thorough research and consult with independent professional advisors before making any decisions.