BlackRock Files Yet Another Bitcoin ETF — Apparently Two Wasn't Hedging Enough 🛡️

BlackRock has filed an application with the U.S. Securities and Exchange Commission (SEC) for a new Bitcoin exchange-traded fund designed to provide partial downside protection while capping some upside potential. The filing, made Monday, would list the product under the ticker "PBIT" as the iShares Bitcoin Managed Protection ETF, according to Bloomberg Intelligence Senior Analyst James Seyffart. The structure marks the third Bitcoin ETF application from BlackRock and remains focused exclusively on $BTC and $ETH products, with no filings covering other cryptocurrencies.

Seyffart detailed the mechanism on X: "Notably, this is the third Bitcoin ETF filing from them. Still only have Bitcoin and Ethereum products — no other cryptos." He added, "Also, this product will hold $IBIT as the underlying asset and will write/buy options around it to generate the defined outcomes. It will be a 40 Act fund." The fund would derive its defined outcomes from BlackRock's existing iShares Bitcoin Trust ETF ($IBIT), using options strategies layered on top of $IBIT to shape investor returns.

The proposed structure falls into the category of "buffer" ETFs, a product type that limits losses over a set period while sacrificing a share of gains, a trade-off aimed at investors seeking measured $BTC exposure. BlackRock's latest filing arrives as the asset manager continues to expand its lineup of spot Bitcoin products, building on the launch and growth of $IBIT since its approval.

The application was reported by Seyffart and confirmed through BlackRock's SEC filing. Additional details, including the fund's expense ratio, option coverage percentages and launch timeline, were not disclosed in the initial filing. As with all prospective ETFs, the product remains subject to SEC review and approval before it can be listed and traded on exchanges.