Switch to seedless. Get 30% off with SWITCH30 till Oct 26BlackRock unveils Bitcoin ETF with downside protection
6.6 Investments BlackRock files for the iShares Bitcoin Managed Protect ETF, offering Bitcoin exposure with downside protection and capped gains via options, expanding its crypto ETF lineup pending SEC approval.
BlackRock has submitted a filing to the U.S. Securities and Exchange Commission for a new Bitcoin ETF named the iShares Bitcoin Managed Protect ETF, with the ticker PBIT. This actively managed fund is designed to provide investors with exposure to Bitcoin’s potential gains while offering downside protection through the use of options contracts. Rather than holding Bitcoin directly, the ETF will reference BlackRock’s existing iShares Bitcoin Trust ETF (IBIT) and utilize derivatives to define possible gain and loss ranges. The strategy involves purchasing call options below IBIT’s current value and selling higher strike calls to offset costs, typically setting purchased options at around 90% of the reference asset’s value. This approach aims to attract risk-averse investors by limiting potential losses, though it also caps possible gains. The new ETF expands BlackRock’s crypto product lineup, which already includes offerings focused on Bitcoin and Ethereum. The fund is currently awaiting regulatory approval before its official launch.
