BlackRock files for third Bitcoin ETF with downside protection

Managed protection fund adds to crypto lineup; Solana and XRP spot ETFs absent

By LineZotpaper

Published20 October 2026

Read Time2 min

BlackRock, the world’s largest asset manager, has filed a preliminary prospectus with the US Securities and Exchange Commission for a Bitcoin exchange-traded fund that offers limited downside protection in exchange for capped gains. The iShares Bitcoin Managed Protection ETF (PBIT) would use options contracts linked to BlackRock’s existing iShares Bitcoin Trust ETF (IBIT) rather than holding Bitcoin directly.

BlackRock’s proposed Bitcoin fund would use overlapping options contracts to seek downside protection while capping potential gains. According to Bloomberg ETF analyst James Seyffart, similar 'buffered' Bitcoin funds already exist from Calamos, First Trust and Innovator. The fund, designated PBIT, would use three overlapping sets of options contracts, typically replacing one each month. Each options tranche would initially target a maximum loss exposure of about 10% to the underlying Bitcoin-linked asset, before fees and expenses. BlackRock cautioned that the fund does not provide a fixed tranche protection start value, floor or cap value, implying investors could face greater losses.

The filing follows BlackRock’s expansion of its crypto ETF lineup, which now includes the iShares Bitcoin Trust ETF (IBIT), the iShares Bitcoin Premium Income ETF (BITA), the iShares Ethereum Trust ETF (ETHA), and the iShares Staked Ethereum Trust ETF (ETHB). IBIT has $65.7 billion in net assets, making it the world’s largest spot Bitcoin ETF.

ETF Store president Nate Geraci expressed surprise that BlackRock has not launched spot ETFs for other cryptocurrencies. 'Still shocked they’re sitting out on spot ETFs for SOL, XRP, HYPE, etc,' Geraci wrote on X on Monday. 'BlackRock clearly has high conviction in only sticking [with] BTC [and] ETH. For now,' he added.

Analysis

Why This Matters

BlackRock’s new ETF offers institutional investors a way to gain Bitcoin exposure with downside protection, potentially attracting risk-averse capital.
The product expands the variety of crypto ETF strategies beyond simple spot funds, integrating crypto further into traditional finance.
BlackRock’s focus on Bitcoin and Ether may influence which crypto assets gain mainstream ETF access.

Background

BlackRock entered the US spot Bitcoin ETF market in January 2024 with IBIT, followed by an Ether ETF in July 2024. IBIT has grown to become the world’s largest spot Bitcoin ETF with $65.7 billion in net assets. The new PBIT filing follows earlier expansions including a staked Ether ETF and a Bitcoin income ETF, bringing BlackRock’s total crypto ETF lineup to four funds.

Key Perspectives

BlackRock: The asset manager is diversifying Bitcoin ETF strategies with an options-based product that limits downside but also caps gains, while avoiding spot ETFs for other cryptocurrencies. Nate Geraci and industry observers: They question BlackRock’s absence from the spot ETF market for Solana, XRP, and other assets, noting the firm appears to have high conviction in only Bitcoin and Ether. Risk considerations: BlackRock’s own caution that the fund does not provide fixed protection means investors could face losses beyond the 10% target exposure.

What to Watch

Whether BlackRock files for spot ETFs in Solana, XRP, or other crypto assets.
Investor demand for the managed protection ETF structure.
SEC review and approval process for PBIT.

Sources

BlackRock files for third Bitcoin ETF, still no Solana or XRP · Cointelegraph.com News

Checked

12 claims in this story checked against 1 source: 10 supported.

Show each claim

SupportedBlackRock has filed for a third Bitcoin ETF offering downside protection.Cointelegraph.com News: “BlackRock files for third Bitcoin ETF, still no Solana or XRP”
SupportedThe proposed managed-protection fund adds to BlackRock’s crypto ETF lineup.Cointelegraph.com News: “BlackRock’s proposed Bitcoin fund would use options to limit potential losses and gains, adding another strategy to its existing Bitcoin and Ether ETF lineup.”
SupportedBlackRock has not launched US spot ETFs tracking Solana or XRP.Cointelegraph.com News: “The asset manager has yet to launch US spot ETFs tracking other cryptocurrencies such as Solana or XRP.”
SupportedBlackRock filed a preliminary prospectus with the SEC for the iShares Bitcoin Managed Protection ETF (PBIT).Cointelegraph.com News: “The world’s largest asset manager on Monday filed a preliminary prospectus with the US Securities and Exchange Commission for the iShares Bitcoin Managed Protection ETF (PBIT).”
SupportedPBIT would use options linked to IBIT rather than holding Bitcoin directly.Cointelegraph.com News: “The proposed ETF would use options linked to BlackRock’s iShares Bitcoin Trust ETF (IBIT) rather than holding Bitcoin (BTC) directly, according to the preliminary prospectus filed with the US Securities and Exchange Commission (SEC).”
SupportedBloomberg ETF analyst James Seyffart said similar buffered Bitcoin funds already exist from Calamos, First Trust and Innovator.Cointelegraph.com News: “Bloomberg ETF analyst James Seyffart said that PBIT would mark BlackRock’s third Bitcoin ETF filing, although similar “buffered” Bitcoin funds already exist from Calamos, First Trust and Innovator.”
SupportedPBIT would use three overlapping options sets, typically replacing one each month.Cointelegraph.com News: “PBIT would use three overlapping sets of options contracts, typically replacing one each month, to seek downside protection while limiting potential gains.”
SupportedEach options tranche would initially target about 10% maximum loss exposure before fees and expenses.Cointelegraph.com News: “Each options tranche would initially target a maximum loss exposure of about 10% to the underlying Bitcoin-linked asset, before fees and expenses.”
Partly supportedBlackRock cautioned that the fund “does not provide a fixed tranche protection start value, floor or cap value.”Cointelegraph.com News: “BlackRock cautioned that the fund “does not provide a fixed Tranche Protection Start Value, Floor or Tranche Cap Value,” implying investors could face greater losses.”
Partly supportedIBIT had $65.7 billion in net assets and was the world’s largest spot Bitcoin ETF.Cointelegraph.com News: “IBIT is the world’s largest spot Bitcoin ETF by assets. It holds Bitcoin directly and gives investors exposure through brokerage accounts. The fund had $65.7 billion in net assets as of Monday, according to BlackRock .”
SupportedETF Store president Nate Geraci wrote on X on Monday, “Still shocked they’re sitting out on spot ETFs for SOL, XRP, HYPE, etc.”Cointelegraph.com News: ““Still shocked they’re sitting out on spot ETFs for SOL, XRP, HYPE, etc,” Geraci wrote on X on Monday.”
SupportedGeraci added, “BlackRock clearly has high conviction in only sticking [with] BTC [and] ETH. For now.”Cointelegraph.com News: ““BlackRock clearly has high conviction in only sticking [with] BTC [and] ETH. For now,” he added.”