BlackRock Proposes Bitcoin ETF With Downside Protection

BlackRock filed a preliminary prospectus and an amendment with the Securities and Exchange Commission on October 19, 2026, to launch the iShares Bitcoin Managed Protection ETF under the ticker PBIT. The fund is designed for investors seeking Bitcoin exposure with reduced volatility by capping potential losses and limiting upside gains.

Rather than holding Bitcoin directly, the fund will employ an options strategy using overlapping three-month tranches of purchased and sold call options tied to the iShares Bitcoin Trust or similar assets. The portfolio will also hold Treasury bills and short-term debt. BlackRock intends to cap downside losses per tranche at approximately 10% before fees, though the filing warns that shareholders have no fixed limit on potential losses and could lose their entire stake.

While premiums from writing higher-strike calls will help offset costs, they will also limit the fund's upside potential. The portfolio manager will maintain discretion over options groups, strikes, and expirations. BlackRock has not yet specified a management fee, exchange, or official launch date, but the registration becomes effective 75 days after the filing, potentially allowing a launch as early as January 2027. This represents the firm's third Bitcoin ETF filing following the iShares Bitcoin Trust and a Bitcoin income fund.