10x Research: BlackRock’s BITA Options Strategy May Underperform Spot Bitcoin

10x Research said BlackRock’s Bitcoin yield-enhanced exchange-traded fund, BITA, may have a strategy design flaw that could cause investors to lag spot Bitcoin and fail to achieve the desired absolute returns. According to Odaily, 10x Research said BITA seeks income by selling call options, a structure it said may underperform in most market conditions. The firm added that BITA follows a fixed rule to sell call options each month, regardless of whether Bitcoin rises, trades sideways, or falls. It said this approach can force investors into an unfavorable trade-off between income and upside potential. 10x Research said its preferred framework emphasizes timing and conditional execution, collecting option premiums only when market conditions are favorable. It also said Bitcoin’s high volatility mainly stems from information asymmetry among market participants and a highly marketed market environment. The firm added that many investors have long tried to capture volatility returns through systematic strategies, but most have not succeeded.