BlackRock’s latest ETF filing brings buffered Bitcoin investing into focus.
BlackRock is targeting Bitcoin investors looking for some downside protection with a new ETF proposal. On October 19, the asset manager filed for a new fund called the iShares Bitcoin Managed Protection ETF with the US Securities and Exchange Commission.
It would trade under the ticker “PBIT.”
New Protection-Focused Fund
PBIT would hold Bitcoin options and fixed-income investments rather than directly owning Bitcoin or IBIT shares. Its holdings could include cash, cash equivalents, money market funds, short-term government obligations, as well as short-term investment-grade fixed-income securities. The proposed fund would use options linked to Bitcoin reference assets to gain exposure to the crypto asset’s price movements while seeking downside protection and limiting potential gains. The official filing read,
“The Fund seeks to provide upside exposure to the iShares Bitcoin Trust ETF (IBIT) and/or similar bitcoin exposure up to an approximate limit, while seeking to provide a level of downside protection. BlackRock Fund Advisors (“BFA”) serves as investment adviser to the Fund.”
The trade-off is that investors may have to give up some potential gains in exchange for that protection, Bloomberg analyst James Seyffart said in a post on X. The asset manager’s existing IBIT holds more than $66 billion in assets, making it the largest spot Bitcoin ETF by assets, according to data compiled by SoSoValue.
The firm launched IBIT in January 2024. Earlier this year, BlackRock introduced a BTC fund focused on generating monthly option premium income, called iShares Bitcoin Premium Income ETF (BITA). This latest filing is yet another step in its expanding BTC ETF lineup.
However, buffered BTC ETFs are not new. Calamos, First Trust, and Innovator already offer similar products. Seyffart added that BlackRock’s entry could “make a big splash,” given its size and influence in the crypto investment market.
IBIT Offsets Outflows From Rivals
IBIT stood out among spot Bitcoin ETFs on Monday, pulling in $665.2 million. The other 11 funds failed to attract net inflows. Fidelity’s FBTC recorded $83.6 million in outflows, while Grayscale’s GBTC shed $54.9 million.
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Despite those losses, the 12 funds collectively ended the day with $526.6 million in net inflows.
