BlackRock, the world's largest asset manager, filed a preliminary prospectus with the US Securities and Exchange Commission on Monday for the iShares Bitcoin Managed Protection ETF (PBIT). The proposed Bitcoin exchange-traded fund would offer limited downside protection in exchange for capped gains. The preliminary prospectus states that PBIT would use options linked to BlackRock's iShares Bitcoin Trust ETF (IBIT) rather than hold Bitcoin directly.
PBIT would use three overlapping sets of options contracts, typically replacing one set each month, to seek downside protection while limiting potential gains. Each options tranche would initially target maximum loss exposure of about 10% to the underlying Bitcoin-linked asset, before fees and expenses. BlackRock cautioned that the fund "does not provide a fixed Tranche Protection Start Value, Floor or Tranche Cap Value," implying investors could face greater losses.
IBIT is the world's largest spot Bitcoin ETF by assets. IBIT holds Bitcoin directly and gives investors exposure through brokerage accounts. BlackRock said IBIT had $65.7 billion in net assets as of Monday. BlackRock also runs the iShares Ethereum Trust ETF (ETHA), a spot Ether fund with $8 billion in net assets. BlackRock has yet to launch US spot ETFs tracking other cryptocurrencies such as Solana or XRP.
ETF Store president Nate Geraci expressed surprise on Monday that BlackRock remained outside the spot ETF markets for SOL, XRP and HYPE, among others. Geraci said BlackRock clearly has high conviction in sticking only with Bitcoin and Ether for now.
BlackRock launched IBIT in January 2024 and ETHA in July that year. BlackRock expanded the lineup in March 2026 with the iShares Staked Ethereum Trust ETF (ETHB), which offers exposure to Ether and staking rewards. The iShares Bitcoin Premium Income ETF (BITA) followed in June, designed to generate income through options trading.
Bloomberg ETF analyst James Seyffart said PBIT would mark BlackRock's third Bitcoin ETF filing. Seyffart said similar buffered Bitcoin funds already exist from Calamos, First Trust and Innovator.