BlackRock Files for Third Bitcoin ETF, Capped-Gain Offering

BlackRock files for third Bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC), as the world's largest asset manager proposes its iShares Bitcoin Managed Protection ETF (PBIT). This new offering aims to provide investors with limited downside protection in exchange for capped gains.

This new offering differs from BlackRock's existing iShares Bitcoin Trust ETF (IBIT), which directly holds Bitcoin (BTC). Instead, PBIT would utilize options linked to IBIT, which is currently the largest spot Bitcoin ETF globally with $65.7 billion in net assets.

BlackRock's entry into the US spot Bitcoin ETF market began in January 2024 with IBIT, followed by the iShares Ethereum Trust ETF (ETHA) in July of the same year. Subsequent offerings include the iShares Staked Ethereum Trust ETF (ETHB) in March 2026, which provides exposure to Ether and staking rewards, and the iShares Bitcoin Premium Income ETF (BITA) in June, designed for income generation through options trading.

Industry observers, such as ETF Store president Nate Geraci, have noted BlackRock's exclusive focus on Bitcoin and Ethereum. This strategy suggests an expansion of ETF strategies for existing crypto assets rather than the introduction of new underlying cryptocurrencies like Solana or XRP.

Bloomberg ETF analyst James Seyffart observed that PBIT marks BlackRock's third Bitcoin ETF filing, noting similar “buffered” Bitcoin funds from other providers such as Calamos, First Trust, and Innovator.

PBIT would employ three overlapping sets of options contracts, with one typically replaced each month, to achieve its objective. Each options tranche would initially target a maximum loss exposure of approximately 10% to the underlying Bitcoin-linked asset, prior to fees and expenses. However, BlackRock has indicated that the fund does not guarantee a fixed Tranche Protection Start Value, Floor, or Tranche Cap Value, meaning investors could potentially incur greater losses.