BlackRock Proposes iShares Bitcoin Managed Protection ETF to Mitigate Risks

On October 19, 2026, BlackRock submitted a filing to the US Securities and Exchange Commission for the iShares Bitcoin Managed Protection ETF. This new fund aims to give investors exposure to Bitcoin while incorporating a layer of downside protection.

The proposed ETF is designed to track gains linked to BlackRock’s iShares Bitcoin Trust ETF (IBIT) while limiting potential losses during market downturns. However, details such as the fund's ticker symbol, fee structure, and launch timeline have not yet been disclosed.

BlackRock’s IBIT, launched in January 2024, has quickly become a market leader among spot Bitcoin exchange-traded products, amassing tens of billions in assets and significant trading volume. The new ETF will utilize an options strategy, which may cap potential gains but aims to provide some protection against losses.

Investors will soon have the option to choose between various exposure types to Bitcoin through BlackRock, including raw exposure, income generation, and downside protection. However, the fund must still clear the SEC process before it can begin trading. Key aspects to monitor include the fund’s ticker, fee structure, and specifics of the downside protection strategy.

New Developments on BlackRock's Bitcoin ETF

On October 19, 2023, BlackRock filed with the SEC for the iShares Bitcoin Managed Protection ETF (PBIT). This fund is designed to hold options and fixed-income securities, gaining Bitcoin exposure through derivatives rather than direct Bitcoin or spot Bitcoin ETP holdings.

The preliminary prospectus indicates that the ETF will not directly purchase Bitcoin, raising questions about future demand for Bitcoin itself.

It is important to note that the securities cannot be sold until the registration statement becomes effective.