Key Takeaways
- • BlackRock filed with the SEC on Monday for the iShares Bitcoin Managed Protection ETF, proposed ticker "PBIT," its third Bitcoin-linked ETF filing after IBIT and BITA.
- • The buffer fund would hold options on IBIT, mostly FLEX options, plus cash and short-term bonds, rather than bitcoin or IBIT shares directly.
- • Each of three overlapping option positions, started a month apart, would initially protect against losses beyond roughly 10% before fees, in exchange for a capped upside.
- • The filing did not specify the upside cap or the management fee; it was set to take effect 75 days after submission, around early January.
- • IBIT took in over $665 million in net inflows on Monday, the only US spot Bitcoin ETF to record inflows that day, per SoSoValue data.
Summary
BlackRock filed for its third Bitcoin ETF on Monday, the iShares Bitcoin Managed Protection ETF, with the proposed ticker "PBIT," according to a filing with the US Securities and Exchange Commission. The fund is designed to limit downside while capping potential gains, seeking 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."
Rather than holding bitcoin or IBIT shares directly, the fund would use options on IBIT, mostly FLEX options, alongside cash and short-term bonds. It would run three overlapping options positions, each started a month apart. Each position would initially set protection at about 90% of IBIT's value, limiting the initial loss to roughly 10% before fees. The filing did not specify the upside cap and left the management fee blank. It was set to take effect 75 days after submission, which would be in early January next year.
The filing is BlackRock's third Bitcoin ETF application, following the spot iShares Bitcoin Trust ETF (IBIT) and the iShares Bitcoin Premium Income ETF (BITA), which sells call options on IBIT to generate income. Bloomberg ETF analyst Eric Balchunas's counterpart Seyffart, as cited by Stocktwits, said the fund "will offer downside protection but investors will give up some upside to get that protection." Seyffart also noted that the product is "nowhere near the first of its kind," pointing to similar bitcoin buffer ETFs from Calamos, First Trust and Innovator, including the Calamos Bitcoin Structured Alt Protection ETF - January (CBOJ), the FT Vest Bitcoin Strategy Floor15 ETF - January (BFJA) and the Innovator Uncapped Bitcoin 20 Floor ETF (QBF). He added that "when BlackRock does something (particularly in this space), it tends to make a big splash." BlackRock still offers only Bitcoin and Ethereum products, with "no other cryptos."
The filing came as IBIT continued to attract capital. According to SoSoValue data, IBIT took in over $665 million in net inflows on Monday, the only US spot Bitcoin ETF to record inflows that day, while US spot Bitcoin ETFs collectively recorded $526.60 million in net inflows. IBIT holds $66.37 billion in net assets, the largest in the group, out of $105.46 billion across all US spot Bitcoin ETFs. Bitcoin was trading around $82,900, up over 1%, according to Stocktwits.
Rather than holding bitcoin or IBIT shares directly, the fund would use options on IBIT, mostly FLEX options, alongside cash and short-term bonds. It would run three overlapping options positions, each started a month apart. Each position would initially set protection at about 90% of IBIT's value, limiting the initial loss to roughly 10% before fees. The filing did not specify the upside cap and left the management fee blank. It was set to take effect 75 days after submission, which would be in early January next year.
The filing is BlackRock's third Bitcoin ETF application, following the spot iShares Bitcoin Trust ETF (IBIT) and the iShares Bitcoin Premium Income ETF (BITA), which sells call options on IBIT to generate income. Bloomberg ETF analyst Eric Balchunas's counterpart Seyffart, as cited by Stocktwits, said the fund "will offer downside protection but investors will give up some upside to get that protection." Seyffart also noted that the product is "nowhere near the first of its kind," pointing to similar bitcoin buffer ETFs from Calamos, First Trust and Innovator, including the Calamos Bitcoin Structured Alt Protection ETF - January (CBOJ), the FT Vest Bitcoin Strategy Floor15 ETF - January (BFJA) and the Innovator Uncapped Bitcoin 20 Floor ETF (QBF). He added that "when BlackRock does something (particularly in this space), it tends to make a big splash." BlackRock still offers only Bitcoin and Ethereum products, with "no other cryptos."
The filing came as IBIT continued to attract capital. According to SoSoValue data, IBIT took in over $665 million in net inflows on Monday, the only US spot Bitcoin ETF to record inflows that day, while US spot Bitcoin ETFs collectively recorded $526.60 million in net inflows. IBIT holds $66.37 billion in net assets, the largest in the group, out of $105.46 billion across all US spot Bitcoin ETFs. Bitcoin was trading around $82,900, up over 1%, according to Stocktwits.
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