BlackRock has filed for a new Bitcoin-linked exchange-traded fund designed to limit some downside risk while capping potential gains, as the world’s largest asset manager expands beyond straightforward Bitcoin price exposure.

INSTITUTIONAL | BlackRock Files to Launch the iShares Bitcoin Managed Protect ETF

The proposed iShares Bitcoin Managed Protection ETF would use options linked to BlackRock’s iShares Bitcoin Trust (IBIT) to provide exposure to Bitcoin’s gains up to a specified limit while seeking to cushion losses, according to a Monday filing with the U.S. Securities and Exchange Commission.

The move addresses a key barrier to broader Bitcoin investment – volatility.

While spot Bitcoin ETFs give investors direct exposure to price movements, a product that seeks to reduce some losses could appeal to investors who want cryptocurrency exposure but are less willing to absorb the full impact of market declines.

INSTITUTIONAL | The Largest Asset Management Firm Globally Bets Bitcoin Investors Want Income, Not Just Price Gains

The strategy comes with a trade-off.

Investors would surrender some potential gains in exchange for a degree of downside protection which is not guaranteed. The fund’s prospectus warns that losses could exceed the intended protection level depending on market conditions and the performance of its options positions.

BlackRock’s flagship IBIT holds more than $65 billion in assets under management making it the largest Bitcoin ETF of its kind. The company launched the fund in January 2024 and introduced the iShares Bitcoin Premium Income ETF in June 2026 adding an options-based income strategy to its product lineup.

The latest filing signals that competition in crypto investment products is expanding beyond access to Bitcoin itself toward strategies that seek to manage how investors experience its price swings.

The proposed fund remains subject to the SEC registration process and is not yet approved for trading.

CASE STUDY | How This Wall Street Bank is Leveraging its Brand, Pricing, Distribution Network for its Bitcoin ETF

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