iShares Files for Bitcoin ETF With Managed Downside Protection

BlackRock's iShares has filed for the iShares Bitcoin Managed Protection ETF (PBIT), which seeks to provide capped upside exposure to bitcoin while limiting potential losses through an options-based strategy. The fund will primarily use call options on the iShares Bitcoin Trust ETF (IBIT), structured across three overlapping tranches with staggered monthly expirations. Each tranche will typically target an initial downside floor of approximately 10%, although protection levels and upside caps may change over time. PBIT will also invest in short-term fixed-income instruments to generate interest income and help offset options costs. The fund will not hold bitcoin or bitcoin ETPs directly. Unlike traditional defined-outcome ETFs, PBIT will not offer a fixed protection floor or upside cap at the fund level, and investors may still incur substantial losses.