BlackRock files PBIT: a Bitcoin ETF with limited protection and capped gains
On Monday, October 19, BlackRock filed a preliminary prospectus with the SEC for the iShares Bitcoin Managed Protection ETF, under the ticker PBIT. The fund has not launched yet and remains subject to the regulatory process.
How it would work
→ It does not hold Bitcoin directly: it uses options linked to IBIT, BlackRock’s spot Bitcoin ETF, and bond assets
→ Three overlapping options series are used, with one of them renewed each month
→ The investor gets limited downside protection in exchange for capped gains
What BlackRock warns: the protection is not guaranteed. Fees and volatility can reduce it, and a total loss remains possible. PBIT could also underperform Bitcoin in a bull market.
The context: this would be BlackRock’s third Bitcoin ETF, after IBIT and BITA, an income ETF launched in June. Analyst James Seyffart (Bloomberg) notes that similar ETFs already exist at Calamos, First Trust, and Innovator. IBIT recorded net inflows of 665.2 M$ d on Monday (Cryptonews).
My take: after a difficult month of October, these products target investors who want exposure to Bitcoin with less volatility. That is a hypothesis, not a forecast.
This is not investment advice.
For you, is partial downside protection worth giving up some upside? #BlackRock
On Monday, October 19, BlackRock filed a preliminary prospectus with the SEC for the iShares Bitcoin Managed Protection ETF, under the ticker PBIT. The fund has not launched yet and remains subject to the regulatory process.
How it would work
→ It does not hold Bitcoin directly: it uses options linked to IBIT, BlackRock’s spot Bitcoin ETF, and bond assets
→ Three overlapping options series are used, with one of them renewed each month
→ The investor gets limited downside protection in exchange for capped gains
What BlackRock warns: the protection is not guaranteed. Fees and volatility can reduce it, and a total loss remains possible. PBIT could also underperform Bitcoin in a bull market.
The context: this would be BlackRock’s third Bitcoin ETF, after IBIT and BITA, an income ETF launched in June. Analyst James Seyffart (Bloomberg) notes that similar ETFs already exist at Calamos, First Trust, and Innovator. IBIT recorded net inflows of 665.2 M$ d on Monday (Cryptonews).
My take: after a difficult month of October, these products target investors who want exposure to Bitcoin with less volatility. That is a hypothesis, not a forecast.
This is not investment advice.
For you, is partial downside protection worth giving up some upside? #BlackRock