EXPOSED: BlackRocks NEW Bitcoin Product is ATTACKING Michael Saylor | EP 1527

**Simply Bitcoin** (0:03)
Blackrock's newest Bitcoin product launched today, and it could make an even bigger impact on the space than their iBit ETF. Now, I know that's a bold statement, considering the Blackrock iBit ETF has scooped up over 750,000 Bitcoin over the past two years, but now it looks like they're getting even more bullish on Bitcoin as this new product looks like it's trying to compete with Saylor's stretch and comes only weeks before Goldman Sachs is due to launch a similar income product.
It seems like the paper Bitcoin games look like they're going to live with us forever. Now, before I break down the product, we did get an interesting clip coming out of Rick Ryder, who is of Blackrock, and I think it's gonna set a good tone for how bullish Blackrock actually is on Bitcoin. Now, we can debate whether they're good for Bitcoin or not, but one thing is for sure, they want to make money off Bitcoin. And that's why this new product is interesting. So, let's watch a short clip, and I'll break down their latest product launch.

**Rick Ryder** (1:16)
All against it.

**SPEAKER_3** (1:18)
One of your mutual funds, I believe still owns a little bit of iBit, Bitcoin. And you were one of the early people inside Blackrock to get into it. It's now sold off 50 percent.
Is it a buy now or are you going to wait more?

**Rick Ryder** (1:31)
Well, these are specific questions. So, listen, I think it's ultimately going considerably higher. I think the technicals, there's some technical condition around it that causes it to chop around. I think it's ultimately going higher. We're keeping it a pretty moderate exposure, quite frankly, because I think there's some other things that we already talked about in technology and some of the growth engines. By the way, there are places to get yield and things like, some parts of the credit markets, EM, that I felt like it's just OK today, and so we've reduced exposure. Ultimately, I think it's going higher.

**Simply Bitcoin** (2:05)
Here, what happened? Oh, OK. Hey, I guess I didn't clip that well enough. So you saw there, Rick Ryder, the literal fixed-income CIO at Blackrock talking about how bullish he is on Bitcoin. He said, and I quote, It's going considerably a lot higher. OK? And that is on the face of their latest launch, which is, of course, something that we did talk about a couple of months ago, but now it is official. So Blackrock's Bitcoin premium income ETF is now trading live under the ticker BIDDA, B-I-T-A. So going into here, let's break down exactly what this is. Blackrock launches their new Bitcoin ETF, combining Bitcoin exposure with covered call income. So Blackrock, again, launched a BIDDA, a covered call Bitcoin fund, that combines spot Bitcoin and iBit exposure with option writing to generate monthly income while retaining most of Bitcoin's upside potential.
Some interesting caveats here, right? Of course, if you've been following along on the Stretch product, that's why Stretch and SATA from Strive, you know, Stretch from Strategy, SATA from Strive, have caught on, though they've been calling it a much more, I guess, maybe memetically digital credit. There has been a lot of recent debate over digital credit in general. I don't know if you guys are following that. I'm not going to cover get into those details today. But what you do need to know is that's why these products, the Stretch and SATA, have been doing so well, is because people are looking for this yield. They're looking for an income generation vehicle from Bitcoin. And as we know, Stretch has been going, well, was going pretty crazy. The last couple of weeks, maybe it's been having a little bit of trouble. Though SATA did just launch their daily dividend, so it's going to be very interesting to see how this plays out. But as of now, what we can tell is that there is a lot of interest for income generation from Bitcoin. Now, as we always say in Bitcoin, if you don't understand where the yield's coming from, you are most likely the yield. So let's check where the yield is coming from. Again, BIDA launched today, and you're seeing here, while selling call options on a portion of those holdings generate monthly income for investors. Now, going further, the fund writes call options on roughly 25% to 35% of its iBID holdings, collecting option premiums that are distributed to investors each month. The structure preserves the bulk of Bitcoin exposure, allowing participation and price appreciation while producing an income stream. A combination that Blackrock says, a growing portion of its client base has requested. Again, what is very interesting here, which we've been talking about in Bitcoin for a long time, and maybe you personally are a spot Bitcoin holder. Maybe you're like me. It's just like, I just buy Bitcoin. Because I don't understand these products, I just, you know, get spot Bitcoin, take them to cold storage. I'll figure all of that stuff out later. You know, right now, this is the safest place for me to be. But what we have been able to see is that essentially Wall Street is not necessarily just getting into Bitcoin because they believe in Bitcoin, per se. That's probably the general view here. It is looking a lot more like it's their clients looking at Bitcoin. It's the institutional retail investor that is talking to their asset managers and being like, hey, look, you've said you're here to protect me from, you know, potential fraud and all the other things you've said about Bitcoin, but you've also basically forced me to miss the best performing asset in the past 16 years. Now, since we do have a lot more regulatory quote clarity, the Wall Street institutions are in Bitcoin, you're starting to see a lot of Bitcoin products get launched. And now we have gotten to the next phase of Bitcoin products being launched, which is they are all competing for the best product for their clients. And now we see another avenue, another product that does exactly this. It's the client at Blackrock. It's the retail institutional investor that's talking to Blackrock and being, hey, I want Bitcoin. It's not necessarily Larry Fink out there that's like, we're gonna do all these Bitcoin products because we wanna corner all of Bitcoin, et cetera. I mean, they could be talking about that in the upper echelon, in the boardrooms, but it's the clients that are forcing their hand, which is one of the things we always say. Bitcoin does have a way of changing you, of you being incentivized, or rather your greed incentivizing you to adopt Bitcoin. And now we're seeing this is playing out in real time. So again, going back here, quote, a significant segment of our client base is interested in Bitcoin, but is also highly focused on income generation, which if you've been in Bitcoin for a long time, we've heard this conversation. This has been one of the biggest FUD lines in Bitcoin forever. It's like, yeah, well, Bitcoin doesn't produce anything. There's no income. There's no yield to it. How can we add this to our portfolio? Where is the gain? You're just waiting for the price to pump up. Well, it looks like Wall Street is trying to find ways to solve, quote, solve this product. Now, maybe it's going to have more cons than pros, but we'll see how this plays out, all right? So continuing, quote, BIDDA was built in response to that demand, enabling investors to retain the majority of the Bitcoin upside exposure while capturing potential income through a convenient exchange traded structure. A covered call strategy involves holding an asset and selling call options against a portion of that position to collect premium income. And I think this is where it gets interesting is this next sentence, which really probably is going to make all of you guys crash out, okay? The next portion is, In sideways or mildly bullish markets, these premiums boost returns. In strong bull markets, upside on the covered portion is capped because issuers must sell at the option strike price. Which does sound a bit, again, to the layman, to the financially illiterate person like myself, that one, they want the Bitcoin price to go sideways. They don't want the upside volatility, per se. They don't want the explosiveness that we want. They want the sideways action because that's where they make the most money from. This is where they're able to not only trade Bitcoin very easily, but also make a bunch of money. And then further, on the other side, you might look at this and think, dang, they're literally admitting that they're going to be suppressing the Bitcoin price and we're gonna go sideways forever. Diminishing returns, Wall Street came into Bitcoin, and now we don't get the gains anymore. They're gonna try to suppress the price. I think those are fair accusations to make here, but we have heard something similar from the Goldman Sachs product, and they seem to be saying something very similar, that they can make a ton of money on sideways action, but when it comes to the bullish Omega candles, that's when this product doesn't necessarily work as designed, which does make me think that, one, they are extremely bullish on Bitcoin long-term, but two, they have two different products here. One, of course, the iBit Bitcoin ETF exposure, where they get money from the gains, and then they have the BIDDA, which they can make gains on sideways action. So they are definitely tailoring these products for their clients. They want to make sure that their clients are able to make money in all types of markets, which being less cynical, it's probably very good for Bitcoin in general, in terms of it maturing.