BlackRock, the world’s largest asset manager, has filed a preliminary prospectus with the US Securities and Exchange Commission (SEC) for a new exchange-traded fund (ETF) aimed at providing Bitcoin exposure with built-in downside protection and capped returns.
Details of the proposed Bitcoin fund
Named the iShares Bitcoin Managed Protection ETF (PBIT), the proposed fund would not hold Bitcoin (BTC) directly but would instead use options linked to the iShares Bitcoin Trust ETF (IBIT), BlackRock’s existing spot Bitcoin ETF.
IBIT has emerged as the world’s largest spot Bitcoin ETF by assets, directly holding Bitcoin and offering investors access through traditional brokerage accounts. According to BlackRock, IBIT managed $65.7 billion in net assets as of Monday.
In addition to IBIT, BlackRock also offers the iShares Ethereum Trust ETF (ETHA), a spot Ether fund with net assets totaling $8 billion. The company has not yet launched spot ETFs in the US for other cryptocurrencies such as Solana (SOL) or XRP.
BlackRock manages global investment portfolios for institutional and individual investors. Its expansion in digital asset ETFs reflects growing demand for regulated crypto investment products in the US market.
Mini dictionary: Spot ETF, an exchange-traded fund that directly holds the underlying asset—such as Bitcoin or Ether—rather than tracking its price with derivatives, giving investors exposure by actually holding the cryptocurrency itself.
Industry reaction and ETF lineup expansion
Industry observers have questioned BlackRock’s reluctance to launch spot ETFs tracking cryptocurrencies beyond Bitcoin and Ether. Nate Geraci, president of the ETF Store, commented on the situation, writing on X: “Still shocked they’re sitting out on spot ETFs for SOL, XRP, HYPE, etc. BlackRock clearly has high conviction in only sticking [with] BTC [and] ETH. For now.”
Geraci noted that BlackRock appears focused exclusively on Bitcoin and Ethereum in the US spot ETF landscape, despite interest in other cryptocurrencies.
BlackRock entered the US spot Bitcoin ETF market in January 2024 with IBIT, followed by the launch of ETHA for Ether in July 2024. The suite of offerings expanded further with the iShares Staked Ethereum Trust ETF (ETHB) in March 2026, providing exposure to Ether and staking rewards. In June, BlackRock introduced the iShares Bitcoin Premium Income ETF (BITA), which allows investors to generate income through options trading strategies.
PBIT structure and risk profile
Bloomberg ETF analyst James Seyffart described PBIT as BlackRock’s third Bitcoin ETF filing, although similar “buffered” Bitcoin funds are already available from asset managers such as Calamos, First Trust, and Innovator.
The PBIT fund aims to provide limited downside protection while capping potential gains through the use of options strategies. The ETF would employ three overlapping sets of options contracts, typically replacing one set each month. Each options tranche is expected to initially target a maximum loss exposure of about 10% to the underlying Bitcoin-linked asset, before fees and expenses are accounted for.
However, BlackRock cautioned in its prospectus that the fund “does not provide a fixed Tranche Protection Start Value, Floor or Tranche Cap Value,” meaning investors could experience greater losses in certain market conditions.
The design of PBIT seeks to balance risk by using options overlays, but the level of protection and the cap on gains may change depending on market dynamics and underlying asset performance.
Other US-based asset managers, including Calamos, First Trust, and Innovator, already offer ETFs that use options to manage volatility and returns for investors seeking structured Bitcoin exposure.
