BlackRock has filed an application with the SEC for another bitcoin ETF – the iShares Bitcoin Managed Protection ETF with the ticker PBIT. The documents were submitted on Monday. The product is designed to provide investors with partial protection against losses, at the cost of giving up some potential gains.
Senior Bloomberg Intelligence analyst James Seyffart called the new product a "buffered" bitcoin ETF in a post on X: investors receive some protection against losses and sacrifice part of the returns. According to him, the fund will be built on the basis of IBIT – BlackRock's main bitcoin ETF. Seyffart noted: this is BlackRock's third application for a bitcoin ETF, but the company still only has products on bitcoin and Ethereum – no other cryptocurrencies.
The structure is designed for investors who need exposure to bitcoin with a specified level of risk. The specific level of protection and growth cap will depend on the final terms of the fund.
IBIT was launched by BlackRock in January 2024; according to The Block tracker, its assets under management have more than doubled, reaching $65.1 billion. In June, the company expanded its lineup: the iShares Bitcoin Premium Income ETF targets monthly income through options while providing exposure to bitcoin. PBIT will become another strategy in this lineup: the main exposure is bitcoin, plus some options income to balance potential growth and protection against decline.
Such a structure does not provide full protection against investment risk, and the growth cap may limit returns if the price of bitcoin rises sharply.
Other issuers have released ETFs on XRP, Solana, and Dogecoin in recent years, but BlackRock sticks to products on bitcoin and Ethereum. PBIT does not add a new cryptocurrency but expands the bitcoin lineup. While registration is ongoing, the market is watching the protection threshold, growth cap, and management fee – these parameters will be revealed in the final terms.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
Related articles
