BlackRock Files for Bitcoin ETF That Aims to Limit Losses

BlackRock files for a bitcoin fund with downside protection

BlackRock, the world's largest asset manager, filed on Monday to launch the iShares Bitcoin Managed Protect ETF. The proposed fund would give investors exposure to bitcoin's price gains while trying to limit losses when the cryptocurrency falls, according to the filing.

The fund would build on BlackRock's existing iShares Bitcoin Trust (IBIT), the largest U.S. spot bitcoin ETF. An ETF is a fund that trades on a stock exchange, and a spot bitcoin ETF holds the cryptocurrency itself.

Key points from the filing and the market

• BlackRock filed on Monday for the iShares Bitcoin Managed Protect ETF, which seeks upside exposure to IBIT and similar bitcoin exposure while seeking a level of downside protection.
• The filing did not say how much downside protection the fund would offer or how much of bitcoin's gains investors could capture.
• IBIT manages more than $65 billion in assets and is the largest of the U.S. spot bitcoin ETFs introduced in 2024.
• BlackRock's earlier products include the Bitcoin Premium Income Fund (BITA), launched in June, which holds bitcoin and IBIT shares and sells call options on roughly 25% to 35% of its portfolio to generate monthly income.

What the Calamos protected funds show

Calamos Investments, based in Naperville, Illinois, first offered protected bitcoin ETFs in early 2025. Investors could choose full downside protection or funds that limit losses to 10% or 20% over a set period.

Its Bitcoin Structured Alt Protection ETF – October (CBOO) fell just 1% from the start of its one-year protection period in October 2025, a Calamos spokesperson said. Over the same stretch, bitcoin dropped as much as 52% from its record high of roughly $126,000.

Calamos puts roughly 90% of these funds' assets into U.S. Treasuries and uses the rest to buy bitcoin-linked options, which are contracts tied to bitcoin's price. The structure lets investors gain when bitcoin rises, up to a set cap, while limiting losses over a defined period.

Matt Kaufman, Calamos' head of ETFs, said in May that the protected bitcoin funds had drawn between $10 million and $15 million over several weeks, even as spot bitcoin ETFs saw outflows.

How BlackRock describes the strategy

In the filing, BlackRock said: "The Fund seeks to provide upside exposure to the iShares Bitcoin Trust ETF and/or similar bitcoin exposure up to an approximate limit, while seeking to provide a level of downside protection."

On its broader push beyond funds that simply track bitcoin's price, Jay Jacobs, BlackRock's U.S. head of equity ETFs, told CoinDesk in June that there are investors across the spectrum looking to generate income while keeping a mostly large, mostly long position in bitcoin.

What is confirmed

BlackRock filed on Monday for the iShares Bitcoin Managed Protect ETF. The filing states the fund's aim of bitcoin upside exposure with some downside protection but gives no details on the level of protection or upside cap. Calamos' CBOO fell 1% since its protection period began in October 2025, per a company spokesperson, while bitcoin fell as much as 52% from its record high of about $126,000. Calamos' structure and its May asset figures come from the company and its ETF head.

What is still unclear

The filing does not specify how much downside protection BlackRock's proposed fund would offer or how much of bitcoin's gains investors could capture. No launch date or fee has been disclosed.

Why it matters for crypto investors

Bitcoin's price swings can be sharp, and the past year's selloff cut the asset by more than half from its peak. Funds that cap losses in exchange for a limit on gains give investors a different way to hold bitcoin exposure, and BlackRock's entry would extend that approach to the largest U.S. spot bitcoin ETF. The Calamos funds' asset inflows, even during a period of outflows from spot bitcoin ETFs, suggest some investors are interested in that trade-off.

Sources

• CoinDesk