BlackRock files for bitcoin ETF with downside protection and capped IBIT exposure
BlackRock, the world's largest investment manager, filed with the U.S. Securities and Exchange Commission on Monday for a new bitcoin fund called the iShares Bitcoin Managed Protect ETF. An ETF is a fund that trades on a stock exchange.
According to BlackRock, the new fund would give investors a share of the gains in its existing bitcoin ETF, the iShares Bitcoin Trust (IBIT), up to a set limit, while also trying to reduce losses when bitcoin falls. The filing does not state when the fund would launch, and the SEC has not yet approved it.
What BlackRock says the fund is designed to do
- The fund aims to give upside exposure to IBIT or similar bitcoin exposure, up to an approximate limit.
- It also aims to provide a level of downside protection.
- The fund would follow BlackRock's existing iShares Bitcoin Trust ETF.
The filing's own words
In the filing, BlackRock wrote: "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."
The filing does not explain how that protection would work in practice, and the supplied material gives no further detail on the mechanism or the size of the upside limit.
BlackRock's growing bitcoin lineup
BlackRock's iShares Bitcoin Trust holds more than $65 billion in assets, making it the largest fund of its kind, according to The Block's bitcoin ETF tracker. BlackRock launched IBIT in January 2024.
In June, the firm launched the iShares Bitcoin Premium Income ETF, which is designed to give investors bitcoin exposure while generating monthly income from options, a type of derivative contract.
Writing on X, Bloomberg Intelligence's James Seyffart said this is BlackRock's third bitcoin ETF filing, and noted that the firm still offers only bitcoin and Ethereum products, while other companies have launched ETFs tracking assets including XRP, SOL and DOGE. This is Seyffart's observation, not a statement from BlackRock or the SEC.
What is confirmed
The filing exists and is public. The fund's name, its stated aims, the size of IBIT and the launch dates of BlackRock's other bitcoin funds are all supported by the source. Approval, launch timing and the fund's specific structure remain unknown.
Sources
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