BlackRock files Bitcoin ETF with managed downside protection

• BlackRock’s iShares Trust has filed for the iShares Bitcoin Managed Protection ETF, designed to combine Bitcoin-linked gains with downside protection.
• The proposed fund uses options and fixed-income investments rather than holding Bitcoin directly.
• Its strategy limits potential gains while seeking to cushion losses, with protection levels that can change over time.

BlackRock’s iShares Trust filed for the iShares Bitcoin Managed Protection ETF with the US Securities and Exchange Commission on 19 October 2026.

The proposed fund, listed under the provisional ticker PBIT, aims to capture Bitcoin-linked gains while limiting losses.

The fund plans to use options linked to the iShares Bitcoin Trust ETF (IBIT) rather than holding Bitcoin (BTC) directly.

Its strategy buys call options to gain exposure and sells other calls to help offset costs, limiting gains above specified price levels.

The fund typically targets an initial protection level around 10% below the reference asset’s value when each options tranche begins.

However, protection levels and potential gains can change as market prices move, and fees can reduce returns.

The fund also plans to hold cash, money market funds and short-term securities to generate income and help cover options costs.

The filing remains subject to SEC effectiveness, and the fund’s prospectus states that investors could lose some or all of their investment.