Asset manager BlackRock has filed a preliminary prospectus with the US Securities and Exchange Commission (SEC) for a new crypto fund, the iShares Bitcoin Managed Protection ETF (PBIT). The proposed fund aims to provide limited downside protection in exchange for capped gains.
According to the filing, the proposed ETF would utilize options linked to BlackRock’s iShares Bitcoin Trust ETF (IBIT) rather than holding Bitcoin directly. IBIT is the world’s largest spot Bitcoin ETF by assets, holding Bitcoin directly and reporting $65.7 billion in net assets as of Monday.
Bloomberg ETF analyst James Seyffart noted that PBIT represents BlackRock’s third Bitcoin ETF filing, though similar buffered Bitcoin funds are already offered by Calamos, First Trust, and Innovator. The fund would use three overlapping sets of options contracts, typically replacing one each month, to seek downside protection while limiting potential gains. Each options tranche would initially target a maximum loss exposure of roughly 10% to the underlying Bitcoin-linked asset before fees and expenses. BlackRock cautioned that the fund does not provide a fixed tranche protection start value, floor, or tranche cap value, meaning investors could potentially face greater losses.
BlackRock currently offers two Bitcoin funds and two Ether funds, including the iShares Ethereum Trust ETF (ETHA) and the iShares Staked Ethereum Trust ETF (ETHB), alongside the iShares Bitcoin Premium Income ETF (BITA). The asset manager has not yet launched US spot ETFs tracking other cryptocurrencies such as Solana or XRP.
Commenting on the lineup, ETF Store president Nate Geraci highlighted BlackRock's absence from the market for spot ETFs tracking other tokens, noting on X that the firm maintains high conviction in Bitcoin and Ether for now.
