BlackRock, the world’s largest investment manager, filed with the U.S. Securities and Exchange Commission (SEC) for a new Bitcoin-linked ETF.
The proposed iShares Bitcoin Managed Protection ETF (PBIT) would offer exposure to Bitcoin’s price movements with some downside protection.
In simple terms, the fund would use an options-based strategy to reduce the impact of falling prices. A typical investment segment, or tranche, would initially carry approximately 10% downside exposure before the intended protection took effect.
However, this would not guarantee a 10% cap on investors’ losses. In exchange for potential protection, investors would also give up some gains if Bitcoin [BTC] rose sharply.
That leaves investors weighing how much upside they would surrender for a softer landing during a decline.
That said, the proposed fund would expand BlackRock’s existing Bitcoin investment offerings, which include IBIT and its Bitcoin premium-income ETF, BITA.
So, given the case in point, IBIT focuses on tracking Bitcoin’s price, and BITA aims to generate income through options premiums. Whereas PBIT would target investors seeking a balance between potential gains and reduced downside risk.
Unlike its flagship IBIT, which directly holds Bitcoin , PBIT plans to use options contracts linked to IBIT and similar Bitcoin-related instruments.
In layman’s language, IBIT may appeal to investors seeking direct Bitcoin exposure. Meanwhile, PBIT is designed for those who prefer a more structured approach that balances potential returns with partial downside protection.
This comes as BlackRock’s IBIT recorded inflows worth $665.2 million on the 19th of October, the largest since October 2025.
In fact, September, which is usually known as the downside month for Bitcoin, also saw IBIT, accounting for around 44% of the $2.31 billion attracted by U.S. spot Bitcoin ETFs between 17th and 22nd September.
All of this happened despite Bitcoin retreating from an intraday high of $87,283 to around $84,175, according to AMBCrypto’s recent report.