BlackRock has submitted a filing with the U.S. Securities and Exchange Commission to launch the iShares Bitcoin Managed Protection ETF. The fund, which would trade under the ticker PBIT, aims to offer investors limited downside protection by capping potential gains. It will not hold Bitcoin directly, but will instead utilize call options on the iShares Bitcoin Trust ETF and other similar assets, alongside fixed-income investments.
The proposed fund structure involves three overlapping tranches with staggered monthly start dates. Each tranche is designed to provide protection at approximately 90% of the reference asset's value, limiting initial losses to roughly 10% before fees. The specific cap on gains will depend on market conditions at the start of each period, and the fund retains discretion to adjust these parameters.
This filing marks BlackRock's third Bitcoin-related ETF application. The company currently manages the iShares Bitcoin Trust ETF (IBIT), which holds $66,37 billion in net assets. On Monday, IBIT recorded net inflows of $665,2 million, standing out as the only fund among 12 spot Bitcoin ETFs to see positive movement, while others like Fidelity's FBTC and Grayscale's GBTC reported outflows.
The broader market for U.S. spot Bitcoin ETFs has seen significant volatility, with cumulative net outflows of approximately $910 million over the two weeks preceding Monday's inflow. Since their inception in January 2024, these funds have accumulated $57,4 billion in net inflows and currently manage a total of $105,46 billion in net assets.
