Investment manager BlackRock has filed an application with the U.S. Securities and Exchange Commission (SEC) for a new Bitcoin-linked exchange-traded fund. The proposed iShares Bitcoin Managed Protection ETF (PBIT) aims to provide exposure to Bitcoin price movements alongside an options-based strategy intended to reduce the impact of declining prices.
Under the proposed structure, a typical investment segment would carry roughly 10% downside exposure before the intended protection activates. However, the fund does not guarantee a strict 10% cap on investor losses. In exchange for this partial downside buffer, investors would also forfeit a portion of potential gains if Bitcoin experiences sharp price increases.
The new fund differs structurally from BlackRock's flagship product, the iShares Bitcoin Trust (IBIT). While IBIT directly holds Bitcoin to track its price, PBIT plans to utilize options contracts tied to IBIT and similar Bitcoin-related instruments. This positions PBIT alongside BlackRock's other offerings, such as the Bitcoin premium-income ETF (BITA), targeting investors who favor a structured balance between potential returns and reduced downside risk over direct exposure.
The filing arrives as BlackRock's IBIT continues to see significant market activity. According to SoSoValue data, IBIT recorded inflows of $665.2 million on October 19. Previously, U.S. spot Bitcoin ETFs attracted $2.31 billion between September 17 and 22, with IBIT accounting for approximately 44% of that total, despite Bitcoin retreating from an intraday high of $87,283 to approximately $84,175.
