BlackRock, the world’s largest asset manager, filed a preliminary prospectus with the SEC on October 20, 2026 for the iShares Bitcoin Managed Protection ETF (PBIT), marking its third Bitcoin-linked fund and the first to use options contracts instead of holding Bitcoin directly.
PBIT would employ three overlapping sets of options contracts, typically replacing one each month, to limit downside losses while capping gains. The fund targets a maximum loss exposure of 10 percent per options tranche before fees, according to the filing.
The structure differs fundamentally from BlackRock’s existing iShares Bitcoin Trust ETF (IBIT), which holds Bitcoin directly and has become the world’s largest spot Bitcoin ETF with $65.7 billion in net assets as of Monday. PBIT would instead use options linked to IBIT rather than purchasing Bitcoin itself.
BlackRock cautioned that PBIT “does not provide a fixed Tranche Protection Start Value, Floor or Tranche Cap Value,” implying investors could face greater losses than advertised. The prospectus did not specify a launch date or timeline for SEC approval.
Similar buffered Bitcoin funds already exist from Calamos, First Trust, and Innovator, offering investors alternatives with downside protection structures.
Crypto Fund Expansion Amid Selective Strategy
The PBIT filing represents BlackRock’s continued expansion in crypto-linked products. The company launched the iShares Ethereum Trust ETF (ETHA) in July 2024 with $8 billion in net assets, followed by the iShares Staked Ethereum Trust ETF (ETHB) in March 2026 and the iShares Bitcoin Premium Income ETF (BITA) in June 2026.
Yet BlackRock has not filed for US spot ETFs for Solana or XRP, a notable absence that has drawn attention from market observers. Nate Geraci, president of ETF Store, remarked: “Still shocked they’re sitting out on spot ETFs for SOL, XRP, HYPE, etc.”
Geraci added that “BlackRock clearly has high conviction in only sticking [with] BTC [and] ETH. For now,” suggesting the company’s current focus remains narrowly on Bitcoin and Ethereum products.
Market Backdrop
The filing arrives as US Bitcoin ETFs posted their biggest inflow showing since September, recording $527 million in net inflows. IBIT continues to dominate the spot Bitcoin ETF market by assets under management.
