BlackRock Inc. (NYSE:BLK) filed on Monday for a Bitcoin (CRYPTO: BTC) exchange-traded fund that would pair potential gains with an intended layer of “downside protection.”
A Buffer Bitcoin ETF?
The iShares Bitcoin Managed Protection ETF seeks to provide upside exposure to the iShares Bitcoin Trust ETF (NASDAQ:IBIT) up to an “approximate limit,” according to the SEC filing.
At the same time, the filing says the ETF would pursue a stated level of downside protection for investors.
The fund would buy and sell call options on IBIT and hold fixed-income investments to generate interest income and help cushion losses.
The ETF seeks to list on the Nasdaq stock exchange under the ticker “PBIT.”
BlackRock Bets Big on Bitcoin
BlackRock already offers two Bitcoin-related ETFs, including its spot: the IBIT and the iShares Bitcoin Premium Income ETF (NASDAQ:BITA), which tracks Bitcoin performance while generating monthly premium income through an options strategy on IBIT.
IBIT is the world’s largest cryptocurrency investment vehicle, holding over $66 billion in net assets, according to SoSo Value. The ETF attracted $665 million in net inflows on Oct. 19
Price Action: As of this writing, BTC is down 1.50% in the last 24 hours to $81,478.81, according to Benzinga Pro.
IBIT shares are down 0.58% in pre-market trading after closing 0.33% higher at $46.30 during Monday’s regular trading session.
The stock maintains a stronger price trend over the short, medium, and long terms, according to Benzinga’s Edge Stock Rankings.
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