iShares Trust filed with the SEC on Oct. 19 for a proposed Bitcoin (BTC) fund that would use options to limit gains while seeking to cushion losses for investors. The fund, named the iShares Bitcoin Managed Protection ETF (PBIT), has not been approved by the regulator.
The prospectus describes call spreads linked to BlackRock’s iShares Bitcoin Trust ETF (IBIT) and/or similar bitcoin exposure. The options would generally be held in three overlapping tranches, alongside fixed-income investments intended to help offset option costs. The fund’s gains would be limited beyond specified levels, and investors could lose some or all of their investment.
The filing says the strategy may increase assets in IBIT and indirectly raise fees paid to BlackRock Fund Advisors and its affiliates. PBIT would not hold Bitcoin directly. Its shares cannot be sold until the registration statement takes effect; the SEC has made no approval or disapproval decision.
Separately, Farside Investors’ data show U.S. spot Bitcoin ETFs recorded $1.0747 billion in net inflows over the three sessions from Oct. 19 through Oct. 21, a total covered in EconoTimes’ earlier report on the three-session inflow.
The filing proposes that the registration statement take effect 75 days after filing. That is not a scheduled SEC decision date.
