Key Takeaways
- • BlackRock filed with the SEC on Oct. 19 for the iShares Bitcoin Managed Protection ETF (ticker PBIT), a buffered product designed to limit initial losses to roughly 10% per options tranche before fees.
- • PBIT would hold no Bitcoin or Bitcoin ETPs; instead it would trade FLEX options tied to the iShares Bitcoin Trust (IBIT) and hold cash, money market funds and short-term investment-grade debt.
- • Each tranche buys calls struck near 90% of IBIT's starting value and sells higher-strike calls, capping upside to help fund the protection, so PBIT could badly trail IBIT in a rally.
- • The filing warns the loss floor is not fixed: losses can exceed it if Bitcoin rises after a tranche begins and then falls, and the SEC has not yet approved the product.
- • The filing is BlackRock's third Bitcoin ETF application, and the spot IBIT fund, which held about $65 billion in net assets as of Oct. 16, serves as the reference asset.
Summary
BlackRock has filed with the U.S. Securities and Exchange Commission on Oct. 19 to launch the iShares Bitcoin Managed Protection ETF, which would trade under the ticker PBIT. According to the filing, the fund would not hold Bitcoin or Bitcoin exchange-traded products. Instead, it would trade options tied to the iShares Bitcoin Trust (IBIT) and keep remaining assets in cash, money market funds and short-term investment-grade debt.
PBIT would typically run three overlapping options tranches, with one expiring and a new one starting each month, relying mainly on FLEX options, which are exchange-traded contracts with customizable terms. Each tranche would buy calls struck near 90% of IBIT's starting value and sell higher-strike calls. That structure caps gains while helping offset the cost of protection, setting an initial loss floor of about 10% per tranche before fees. The filing stresses that this floor is not fixed: if Bitcoin rises after a tranche begins and later drops, losses can exceed it. The filing also concedes PBIT could badly trail IBIT in a strong rally and warns that extreme volatility could shrink both upside and protection. The management fee remains blank, and the proposed effective date falls 75 days after filing, though the preliminary prospectus bars sales until registration takes effect.
Bloomberg Intelligence senior analyst James Seyffart described PBIT as a buffer ETF, in which buyers accept less upside in exchange for some downside protection. He noted it is BlackRock's third Bitcoin ETF filing and that the firm currently offers only Bitcoin and Ethereum (ETH) products. Seyffart said the product will be a 40 Act fund that buys and writes options around IBIT, and pointed to similar buffered Bitcoin funds already offered by Calamos and First Trust.
PBIT would join a lineup BlackRock has built since launching IBIT in January 2024. The spot fund held about $65 billion in net assets as of Oct. 16, based on the company's published figures. In January, the firm sought approval for a Bitcoin income fund that sells covered calls, which debuted June 16 as the iShares Bitcoin Premium Income ETF (BITA). PBIT would apply the same options toolkit toward protection rather than income.
PBIT would typically run three overlapping options tranches, with one expiring and a new one starting each month, relying mainly on FLEX options, which are exchange-traded contracts with customizable terms. Each tranche would buy calls struck near 90% of IBIT's starting value and sell higher-strike calls. That structure caps gains while helping offset the cost of protection, setting an initial loss floor of about 10% per tranche before fees. The filing stresses that this floor is not fixed: if Bitcoin rises after a tranche begins and later drops, losses can exceed it. The filing also concedes PBIT could badly trail IBIT in a strong rally and warns that extreme volatility could shrink both upside and protection. The management fee remains blank, and the proposed effective date falls 75 days after filing, though the preliminary prospectus bars sales until registration takes effect.
Bloomberg Intelligence senior analyst James Seyffart described PBIT as a buffer ETF, in which buyers accept less upside in exchange for some downside protection. He noted it is BlackRock's third Bitcoin ETF filing and that the firm currently offers only Bitcoin and Ethereum (ETH) products. Seyffart said the product will be a 40 Act fund that buys and writes options around IBIT, and pointed to similar buffered Bitcoin funds already offered by Calamos and First Trust.
PBIT would join a lineup BlackRock has built since launching IBIT in January 2024. The spot fund held about $65 billion in net assets as of Oct. 16, based on the company's published figures. In January, the firm sought approval for a Bitcoin income fund that sells covered calls, which debuted June 16 as the iShares Bitcoin Premium Income ETF (BITA). PBIT would apply the same options toolkit toward protection rather than income.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.