BlackRock Enters the Buffered Bitcoin ETF Race With New SEC Filing

BlackRock's latest ETF filing brings buffered Bitcoin investing into focus. BlackRock is targeting Bitcoin investors looking for some downside protection with a new ETF proposal. On October 19, the asset manager filed for a new fund called the iShares Bitcoin Managed Protection ETF with the US Securities and Exchange Commission. It would trade under the ticker “PBIT.” New Protection-Focused Fund PBIT would hold Bitcoin options and fixed-income investments rather than directly owning Bitcoin or IBIT shares. Its holdings could include cash, cash equivalents, money market funds, short-term government obligations, as well as short-term investment-grade fixed-income securities. The proposed fund would use options linked to Bitcoin reference assets to gain exposure to the crypto asset’s price movements while seeking downside protection and limiting potential gains. The official filing read, “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 to provide a level of downside protection. BlackRock Fund Advisors (“BFA”) serves as investment adviser to the Fund.” The trade-off is that inves...