TL;DR
BlackRock is seeking to launch a Bitcoin ETF designed to limit potential losses in exchange for capping potential gains.
The fund, called the iShares Bitcoin Managed Protection ETF (PBIT), will use options contracts linked to IBIT rather than holding Bitcoin directly.
The asset manager continues to expand its Bitcoin and Ethereum investment products but has yet to offer spot ETFs tracking cryptocurrencies such as Solana or XRP.
BlackRock filed an application with the US Securities and Exchange Commission (SEC) to launch a Bitcoin ETF offering partial protection against market declines. The product will also cap potential gains for investors.
The fund, called the iShares Bitcoin Managed Protection ETF (PBIT) , will use options contracts linked to the iShares Bitcoin Trust ETF (IBIT) rather than purchasing Bitcoin directly.
The proposed structure aims to reduce exposure to certain losses through options strategies, although the protection is not guaranteed.
BlackRock Seeks to Limit Losses Through Options
PBIT will use three overlapping sets of options contracts , which will be renewed periodically, typically one each month.
Each set will initially aim to limit losses to approximately 10% of the value of the underlying Bitcoin-linked asset , before fees and expenses.
However, BlackRock warned that the fund does not guarantee a fixed level of protection or definitive limits on losses or gains . Investors could face greater losses than initially anticipated.
Bloomberg analyst James Seyffart noted that PBIT would be BlackRock’s third Bitcoin ETF filing. Other asset managers, including Calamos, First Trust, and Innovator, already offer similar products.
The Asset Manager Remains Focused on Bitcoin and Ethereum
BlackRock entered the US spot Bitcoin ETF market in January 2024 with the launch of IBIT.
Currently, IBIT manages approximately $65.7 billion in net assets , while its spot Ethereum fund, ETHA, holds around $8 billion .
In March 2026, the company introduced the iShares Staked Ethereum Trust ETF (ETHB) , which combines exposure to Ethereum with staking rewards.
Later, in June, it launched the iShares Bitcoin Premium Income ETF (BITA) , designed to generate income through options trading.
Despite this expansion, BlackRock has yet to launch US spot ETFs linked to Solana, XRP, or other altcoins .
Nate Geraci, president of ETF Store, questioned the absence of these products and noted that the asset manager continues to prioritize Bitcoin and Ethereum.
