ImportantBlackRock Files for Bitcoin Downside Protection ETF Tied to IBIT With Capped Upside Returns

Per U.S. SEC filings, BlackRock's iShares Trust filed a registration application for the iShares Bitcoin Managed Protection ETF under the ticker PBIT on October 19. The fund is designed to offer upside returns aligned with the iShares Bitcoin Trust ETF (IBIT) and comparable Bitcoin exposure, with a predefined cap on maximum gains, while delivering a specified level of downside protection. Its strategy typically involves purchasing Bitcoin options in three tranches, simultaneously writing options to offset acquisition costs (thereby capping upside returns), and investing in fixed-income instruments to generate interest income that hedges option costs and underpins downside protection.

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