BlackRock Inc. (NYSE:BLK) has filed for a new Bitcoin (CRYPTO: BTC) exchange-traded fund (ETF) designed to offer investors both upside potential and downside protection. The iShares Bitcoin Managed Protection ETF aims to provide exposure to gains from the iShares Bitcoin Trust ETF (NASDAQ:IBIT) up to a specified limit, while also seeking to mitigate losses through a strategy involving call options on IBIT and fixed-income investments.
The proposed ETF, which would trade under the ticker “PBIT” on the Nasdaq, would use call options and interest-generating fixed-income assets to help cushion potential downturns. This approach is intended to balance the volatility typically associated with Bitcoin investments.
BlackRock already manages two Bitcoin-related ETFs: the IBIT, the world’s largest cryptocurrency investment vehicle with over $66 billion in net assets, and the iShares Bitcoin Premium Income ETF (NASDAQ:BITA), which generates monthly income through an options strategy on IBIT. On October 19, IBIT saw $665 million in net inflows.
As of this writing, Bitcoin is trading at $81,478.81, down 1.50% in the last 24 hours. IBIT shares are down 0.58% in pre-market trading after closing at $46.30 during Monday’s regular session.