BlackRock files for bitcoin ETF offering downside protection and upside exposure to IBIT
One of the world's largest investment managers, BlackRock has filed for another bitcoin fund, marking its third tied to the asset.
BlackRock, one of the world's largest investment managers, has filed for a new bitcoin exchange-traded fund designed to offer investors downside protection while maintaining upside exposure to its existing spot bitcoin ETF, IBIT. The filing marks BlackRock's third bitcoin-linked fund product and signals continued institutional interest in expanding structured crypto investment vehicles.
The new product, described as a "Bitcoin Managed Protection ETF," would build on BlackRock's IBIT, which launched in January 2024 as part of the first wave of spot bitcoin ETFs approved by the U.S. Securities and Exchange Commission. IBIT has since become one of the most successful ETF launches in history, accumulating tens of billions of dollars in assets under management and drawing significant inflows from both institutional and retail investors.
The filing reflects a broader industry trend toward more sophisticated, risk-managed crypto products aimed at investors who seek bitcoin exposure but remain cautious about the asset's historically sharp price drawdowns. By layering downside protection onto an existing bitcoin product, BlackRock appears to be targeting a segment of investors that has remained on the sidelines due to volatility concerns.
Market participants will be watching for regulatory feedback from the SEC, as well as details on how the protection mechanism will be structured — whether through options strategies, buffer arrangements, or other hedging instruments — which will determine the product's appeal and cost profile.
Source: The Block
