BlackRock files for third Bitcoin ETF with capped gains and limited losses

BlackRock files for a Bitcoin fund that limits both losses and gains

BlackRock filed a preliminary prospectus with the US Securities and Exchange Commission on Monday for a new Bitcoin fund called the iShares Bitcoin Managed Protection ETF (PBIT). The company is the world's largest asset manager.

The proposed fund would not hold Bitcoin (BTC) directly. Instead, it would use options tied to BlackRock's existing iShares Bitcoin Trust ETF (IBIT), according to the filing.

An ETF is a fund that trades on a stock exchange, so investors can buy and sell it through a regular brokerage account. BlackRock describes the new fund as offering limited protection against losses, but with gains capped in return.

What the filing says about protection and caps

• The fund would use three overlapping sets of options contracts, typically replacing one set each month.
• Each options tranche would initially aim for a maximum loss exposure of about 10% of the underlying Bitcoin-linked asset, before fees and expenses.
• BlackRock warned in the filing that the fund "does not provide a fixed Tranche Protection Start Value, Floor or Tranche Cap Value," which means investors could lose more than that target.

Where PBIT fits in BlackRock's crypto lineup

BlackRock entered the US spot Bitcoin ETF market in January 2024 with IBIT, then launched the iShares Ethereum Trust ETF (ETHA) in July that year. In March 2026 it added the iShares Staked Ethereum Trust ETF (ETHB), which offers exposure to Ether plus staking rewards. In June it followed with the iShares Bitcoin Premium Income ETF (BITA), which is designed to generate income through options trading.

IBIT holds Bitcoin directly and is the world's largest spot Bitcoin ETF by assets, with $65.7 billion in net assets as of Monday, according to BlackRock. ETHA, a spot Ether fund, had $8 billion in net assets.

Still no spot ETFs for Solana, XRP or HYPE

BlackRock has not launched US spot ETFs tracking other cryptocurrencies such as Solana or XRP. ETF Store president Nate Geraci said on X on Monday that he was "still shocked they're sitting out on spot ETFs for SOL, XRP, HYPE, etc," adding that BlackRock "clearly has high conviction in only sticking [with] BTC [and] ETH. For now." This is an opinion, not a statement from BlackRock.

Bloomberg ETF analyst James Seyffart said PBIT would be BlackRock's third Bitcoin ETF filing. He also noted that similar "buffered" Bitcoin funds already exist from Calamos, First Trust and Innovator.

What is confirmed

BlackRock filed a preliminary prospectus for PBIT with the SEC on Monday. The fund would use options linked to IBIT rather than holding Bitcoin directly. IBIT had $65.7 billion in net assets as of Monday and ETHA had $8 billion, per BlackRock. BlackRock has no US spot ETFs for Solana or XRP.

What is still unclear

The filing is preliminary, so it is not yet known whether the SEC will approve the fund or when it could launch. The exact level of protection and the cap on gains are also not fixed, because BlackRock said the fund does not set a fixed protection value, floor or cap.

Why it matters

The filing shows BlackRock is adding new strategies around Bitcoin and Ether rather than launching funds for other cryptocurrencies. The proposed fund's structure means investors would give up some potential gains in exchange for some downside protection, and that protection is not guaranteed at a set level.

Sources

• Cointelegraph

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