BlackRock Files for New Bitcoin ETF With Downside Protection
The PBIT fund will use options on IBIT to limit risk as the main ETF records a $665 million single-day inflow
Bitcoin Editor: Fabricio Marcilio 1 min read
BlackRock has filed an application with the U.S. Securities and Exchange Commission to launch the iShares Bitcoin Managed Protection ETF. The new product, identified as PBIT, seeks to offer investors protection against sharp drops in asset value.
The fund operates by using options linked to the iShares Bitcoin Trust, known as IBIT. In exchange for this protection against losses, investors accept a cap on potential gains. The fund does not hold Bitcoin directly in its portfolio.
IBIT has solidified its position as the world's largest spot Bitcoin ETF, reaching a net asset value of $65.7 billion. Recently, the investment vehicle recorded an inflow of $665 million in a single trading day.
The firm's strategy remains focused exclusively on Bitcoin and Ether. So far, the company has not filed for funds based on other cryptocurrencies like Solana or XRP despite market expectations.
BlackRock's crypto portfolio already includes two Bitcoin funds and two Ether funds. The diversification of these offerings reflects an effort to cater to different risk profiles within the digital asset ecosystem.
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