Key Takeaways
- • BlackRock filed with the SEC on October 19 for the iShares Bitcoin Managed Protection ETF, ticker PBIT, a buffered Bitcoin product designed to offer downside protection in exchange for capped upside.
- • PBIT would hold Bitcoin options and fixed-income instruments rather than owning Bitcoin or IBIT shares directly, using options tied to Bitcoin reference assets.
- • IBIT, the largest spot Bitcoin ETF with more than $66 billion in assets according to SoSoValue, pulled in $665.2 million on Monday while the other 11 spot Bitcoin ETFs recorded no net inflows.
- • Buffered Bitcoin ETFs are not new; Calamos, First Trust, and Innovator already offer similar products, and Bloomberg analyst James Seyffart said BlackRock's entry could "make a big splash."
Summary
BlackRock has filed with the US Securities and Exchange Commission for a new exchange-traded fund, the iShares Bitcoin Managed Protection ETF, which would trade under the ticker PBIT. The filing, made on October 19, targets Bitcoin investors seeking downside protection. According to the filing, 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 a level of downside protection. BlackRock Fund Advisors (BFA) would serve as investment adviser.
Rather than directly owning Bitcoin or IBIT shares, PBIT would hold Bitcoin options and fixed-income investments. Its holdings could include cash, cash equivalents, money market funds, short-term government obligations, and short-term investment-grade fixed-income securities. The structure trades potential gains for protection. Bloomberg analyst James Seyffart said in a post on X that investors may have to give up some potential gains in exchange for that protection.
IBIT, which BlackRock launched in January 2024, holds more than $66 billion in assets and is the largest spot Bitcoin ETF by assets, according to data compiled by SoSoValue. Earlier this year, BlackRock introduced the iShares Bitcoin Premium Income ETF (BITA), a fund focused on generating monthly option premium income. The PBIT filing extends the firm's expanding Bitcoin ETF lineup.
Buffered Bitcoin ETFs are not new. Calamos, First Trust, and Innovator already offer comparable products. Seyffart nonetheless said BlackRock's entry could "make a big splash," given the firm's size and influence in the crypto investment market.
In flows data for the day, IBIT stood out among spot Bitcoin ETFs on Monday with $665.2 million in inflows. The other 11 funds failed to attract net inflows: Fidelity's FBTC recorded $83.6 million in outflows and Grayscale's GBTC shed $54.9 million. Despite those losses, the 12 funds collectively ended the day with $526.6 million in net inflows, according to the source.
Rather than directly owning Bitcoin or IBIT shares, PBIT would hold Bitcoin options and fixed-income investments. Its holdings could include cash, cash equivalents, money market funds, short-term government obligations, and short-term investment-grade fixed-income securities. The structure trades potential gains for protection. Bloomberg analyst James Seyffart said in a post on X that investors may have to give up some potential gains in exchange for that protection.
IBIT, which BlackRock launched in January 2024, holds more than $66 billion in assets and is the largest spot Bitcoin ETF by assets, according to data compiled by SoSoValue. Earlier this year, BlackRock introduced the iShares Bitcoin Premium Income ETF (BITA), a fund focused on generating monthly option premium income. The PBIT filing extends the firm's expanding Bitcoin ETF lineup.
Buffered Bitcoin ETFs are not new. Calamos, First Trust, and Innovator already offer comparable products. Seyffart nonetheless said BlackRock's entry could "make a big splash," given the firm's size and influence in the crypto investment market.
In flows data for the day, IBIT stood out among spot Bitcoin ETFs on Monday with $665.2 million in inflows. The other 11 funds failed to attract net inflows: Fidelity's FBTC recorded $83.6 million in outflows and Grayscale's GBTC shed $54.9 million. Despite those losses, the 12 funds collectively ended the day with $526.6 million in net inflows, according to the source.
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.