BlackRock Submits Application for Bitcoin Downside Protection ETF, Linked to IBIT with a Cap on Returns

According to U.S. SEC filings, BlackRock's iShares Trust submitted a registration application on October 19 for the iShares Bitcoin Managed Protection ETF, ticker symbol PBIT. The fund aims to provide upside returns tied to the iShares Bitcoin Trust ETF (IBIT) and similar Bitcoin exposure, but with an approximate cap on returns, while offering a certain degree of downside protection. Its strategy typically involves purchasing Bitcoin options in three tranches, while simultaneously selling options to offset purchase costs (thus limiting upside returns), and investing in fixed-income products to generate interest income, which is used to hedge option costs and provide downside protection.