BlackRock Files With SEC to Launch Downside-Protected Bitcoin ETF
Summary
- BlackRock said it is seeking to launch a new exchange-traded fund (ETF) designed to pursue gains from rising Bitcoin prices while reducing downside risk.
- The firm said the product is based on its existing spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), and is designed to cap upside participation while offering partial protection against losses from price declines.
- BlackRock said it still offers only Bitcoin and Ether (ETH) products, including IBIT, which has more than $65 billion in assets under management, and has no products tied to other cryptocurrencies.
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BlackRock, the world's largest asset manager, is seeking to launch a new exchange-traded fund designed to capture gains from rising Bitcoin prices while limiting downside risk.
The Block reported on October 19 that BlackRock filed a registration statement with the US Securities and Exchange Commission that day for the iShares Bitcoin Managed Protect ETF.
The product is built around BlackRock's existing spot Bitcoin ETF, the iShares Bitcoin Trust, or IBIT. It is designed to offer upside exposure to Bitcoin up to a certain limit while providing partial protection against price declines.
In the filing, BlackRock said the fund seeks exposure to upside returns from IBIT or similar Bitcoin investment products up to a set cap, while offering a measure of downside protection.
BlackRock has continued to expand its lineup of Bitcoin ETFs. IBIT, which launched in January 2024, is now the world's largest spot Bitcoin ETF, with more than $65 billion in assets under management. In June, the firm also launched the iShares Bitcoin Premium Income ETF, which is designed to generate monthly income through options premiums alongside Bitcoin exposure.
James Seyffart, an analyst at Bloomberg Intelligence, wrote on X that the filing marks BlackRock's third Bitcoin ETF-related application. He added that BlackRock still offers only Bitcoin and Ether products and has no funds tied to other cryptocurrencies.
That contrasts with other asset managers, which have recently moved to expand their ETF lineups to include XRP, Solana and Dogecoin.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.