BlackRock Files for Third Bitcoin ETF

BlackRock is preparing to expand its cryptocurrency investment offerings with a new Bitcoin exchange-traded fund (ETF) designed to provide partial protection against market declines while limiting potential returns.

The world's largest asset manager submitted a preliminary prospectus to the US Securities and Exchange Commission (SEC) for the proposed iShares Bitcoin Managed Protection ETF (PBIT). Unlike traditional spot Bitcoin ETFs, the new fund would not hold Bitcoin (BTC) directly. Instead, it would use options contracts linked to BlackRock's existing iShares Bitcoin Trust ETF (IBIT) to create a structured investment strategy that balances downside protection with capped upside potential.

BlackRock proposes Bitcoin ETF with downside protection

The proposed PBIT fund would use a series of options contracts to manage investors' exposure to Bitcoin price movements. According to the preliminary prospectus, the strategy would involve three overlapping groups of options contracts, with one group typically replaced each month.

Each group, or tranche, would initially aim to limit losses to approximately 10% of the underlying Bitcoin-linked asset's value, before accounting for fees and expenses. However, the fund would also restrict potential gains, meaning investors would not necessarily benefit from the full extent of a significant Bitcoin price increase. BlackRock emphasized that the protection mechanism would not guarantee a fixed maximum loss.

The filing specifically states that the fund “does not provide a fixed Tranche Protection Start Value, Floor or Tranche Cap Value,” indicating that actual losses could exceed the initially targeted protection levels. Bloomberg ETF analyst James Seyffart noted that PBIT would represent BlackRock's third Bitcoin ETF filing. He also pointed out that similar buffered Bitcoin investment products are already available from asset managers including Calamos, First Trust and Innovator.

BlackRock continues expanding its Bitcoin and Ethereum ETF lineup

BlackRock entered the US spot Bitcoin ETF market in January 2024 with the launch of IBIT, which has since become the largest spot Bitcoin ETF globally by assets under management. In March 2026, BlackRock introduced the iShares Staked Ethereum Trust ETF (ETHB), providing investors with exposure to Ether alongside staking rewards.

This was followed in June by the iShares Bitcoin Premium Income ETF (BITA), which uses options strategies to generate income from Bitcoin-related market exposure. The proposed PBIT fund would add another investment approach to BlackRock's cryptocurrency product lineup, targeting investors who prefer a more structured risk-and-return profile.

BlackRock remains focused on Bitcoin and Ether

Despite expanding its range of cryptocurrency investment strategies, BlackRock has not introduced US spot ETFs tracking other major digital assets, including Solana (SOL) and XRP. This approach has attracted attention from market observers as other asset managers pursue investment products tied to a broader selection of cryptocurrencies.

ETF Store president Nate Geraci questioned BlackRock's continued focus on Bitcoin and Ether in a Monday post on X. “Still shocked they’re sitting out on spot ETFs for SOL, XRP, HYPE, etc,” Geraci wrote. “BlackRock clearly has high conviction in only sticking [with] BTC [and] ETH. For now,” he added.

Rather than introducing exposure to additional cryptocurrencies, BlackRock has continued developing different investment strategies around Bitcoin and Ether, including staking, options-based income generation and downside protection.

The proposed PBIT fund reflects this approach by offering an alternative way to gain Bitcoin-related exposure through a traditional brokerage account. However, the ETF remains at the preliminary filing stage, and its eventual launch will depend on the applicable regulatory process.

Sources:

https://www.blackrock.com/us/individual/products/investment-funds#/?productView=all&pageNumber=1&sortColumn=totalNetAssets&sortDirection=desc&dataView=perfNav&fac=62184

https://www.sec.gov/Archives/edgar/data/1100663/000119312526425335/d144515d485apos.htm

https://www.ishares.com/us/insights/portfolio-insights/bita-bitcoin-premium-income-strategy

https://cointelegraph.com/news/blackrock-ishares-bitcoin-managed-protection-etf-pbit

https://www.ishares.com/us/products/337614/ishares-ethereum-trust-etf

https://www.ishares.com/us/products/333011/ishares-bitcoin-trust-etf

https://x.com/NateGeraci/status/2112335934813323506

https://x.com/JSeyff/status/2112294889442447461