BlackRock wants to cushion Bitcoin losses. What does its new ETF give up?

BlackRock has proposed a Bitcoin fund that seeks to soften some losses by giving up part of the gains when the price rises. Its options would reference IBIT, while the fund itself would hold no Bitcoin. The word “protection” describes a strategy with changing terms, not an insured account or a fixed promise to shareholders. BlackRock has filed a plan for the iShares Bitcoin Managed Protection ETF that would buy and sell options linked to its existing Bitcoin trust. The October 19 SEC registration statement says the proposed fund, expected to use the ticker PBIT, would seek limited upside exposure to IBIT or comparable Bitcoin reference assets while offering a measure of downside protection. Its securities cannot be sold until the registration statement becomes effective.

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