BlackRock files for Bitcoin ETF offering limited downside protection

BlackRock has filed with the U.S. Securities and Exchange Commission to introduce a Bitcoin-linked ETF designed to provide partial protection against falling prices while limiting the gains investors can earn when Bitcoin rises. Summary BlackRock has filed for the iShares Bitcoin Managed Protection ETF, a proposed fund with ticker PBIT. The strategy uses Bitcoin-linked call options to limit some losses while capping potential investment gains. Typical options tranches initially target approximately 10% downside exposure, but shareholder losses are not guaranteed limits. The proposed fund will not hold Bitcoin or Bitcoin exchange-traded products directly, according to its prospectus. BlackRock has not disclosed PBIT’s management fee, listing exchange or confirmed trading launch date. According to the asset manager’s October 19 filing, the proposed iShares Bitcoin Managed Protection ETF will trade under the ticker PBIT if its registration becomes effective and the fund launches. Its investment strategy will use options linked to BlackRock’s iShares Bitcoin Trust ETF, or IBIT, and similar Bitcoin-related instruments. The fund plans to purchase and sell call options at different prices...