According to Fixygen, the American investment firm BlackRock has filed an application with the U.S. Securities and Exchange Commission (SEC) to register a new exchange-traded fund, the iShares Bitcoin Managed Protection ETF, which will allow investors to profit from Bitcoin’s price appreciation while partially limiting the risk of losses.
According to the fund’s preliminary prospectus published on the SEC’s website, the new instrument is planned to be listed on the exchange under the ticker symbol PBIT. Its strategy involves participating in the appreciation of the iShares Bitcoin Trust ETF (IBIT)—BlackRock’s flagship Bitcoin fund—or other Bitcoin-related instruments, while simultaneously limiting potential losses.
Unlike a traditional spot Bitcoin ETF, which directly holds the cryptocurrency, the new fund will not purchase Bitcoin or shares of other cryptocurrency exchange-traded products. Instead, it intends to use a combination of options and fixed-income instruments.
The investment strategy will be based on call options, which generate returns when the underlying asset’s value rises. BlackRock plans to simultaneously buy and sell such options, creating what are known as option spreads.
This structure helps limit potential losses if the price of Bitcoin falls, but at the same time sets an upper limit on returns in the event of a significant rise in the cryptocurrency’s price.
According to preliminary documentation, BlackRock intends to create three overlapping option portfolios with different start dates. Typically, one of the portfolios will expire each month, and a new one will be formed to replace it.
For each such portfolio, an initial protection level is provided, under which potential losses from changes in the value of the underlying asset are approximately limited to 10% at the time of option purchase, excluding commissions and expenses.
At the same time, the company emphasizes that this does not constitute a guaranteed capital protection at the fund level. The level of potential losses may vary depending on market conditions, the timing of unit purchases, and the terms of the option contracts.
The fund plans to allocate the remaining portion of its assets to cash, money market instruments, short-term government bonds, and other investment-grade debt securities.
The interest income generated is expected to be used to partially cover the costs of option strategies and mitigate potential investment losses.
BlackRock warns that the new product is not designed to completely eliminate the risks associated with Bitcoin. Given the sharp volatility of the cryptocurrency market, investors may lose some or all of their invested capital.
A key difference between the new fund and a conventional Bitcoin ETF lies in the nature of its returns. Holders of spot funds receive returns directly linked to the cryptocurrency’s price movements, net of expenses. Investors in the iShares Bitcoin Managed Protection ETF will participate in the growth of the underlying asset only to the extent determined by the options strategy.
Thus, in the event of a significant rise in Bitcoin’s price, the new fund’s returns may turn out to be significantly lower than the cryptocurrency’s own performance. At the same time, the strategy is designed to mitigate the effects of a market downturn.
The proposed product will expand BlackRock’s lineup of cryptocurrency investment instruments, which in January 2024 launched the iShares Bitcoin Trust ETF, a spot fund, under the ticker IBIT.
In June 2026, the company also introduced the iShares Bitcoin Premium Income ETF, designed to generate income from option premiums.
The new strategy differs from both of these instruments in that it combines limited exposure to Bitcoin’s price appreciation with a mechanism that provides partial protection against price declines.
The development of such products reflects the expansion of the institutional cryptocurrency investment market. Asset management firms offer investors not only direct exposure to digital assets through exchange-traded funds but also instruments with various combinations of return and risk.
For institutional investors, investment advisors, and holders of diversified portfolios, such products may be of interest as an alternative to direct ownership of cryptocurrency.
At the same time, protection mechanisms entail additional costs and limitations on returns, so their economic efficiency depends on market conditions.
According to the registration documents, BlackRock expects the application to take effect 75 days after its submission. However, the preliminary prospectus contains blank fields, particularly regarding the fund’s management fee.
Registration does not yet constitute approval to sell shares. The SEC has not approved the new investment product, and the final launch date has not yet been announced.
BlackRock is one of the world’s largest asset management companies. Through its iShares platform, the group offers a wide range of exchange-traded funds, including products based on stocks, bonds, commodities, and digital assets.
