BlackRock BITA May Underperform Spot Bitcoin, 10x Research Flags Strategy Design Flaw

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According to 10x Research, BlackRock's Bitcoin yield ETF BITA may underperform spot Bitcoin due to its covered call strategy that generates returns by selling call options. The fund executes the fixed-rule strategy monthly regardless of market conditions, forcing investors to choose between collecting premium income and capturing upside potential. 10x Research noted that investors may face unfavorable tradeoffs between yield and price appreciation in most market environments.
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