BlackRock Files for Bitcoin ETF That Trades Capped Gains for a 10% Loss Floor
By Unchained
AI summary of the source article
BlackRock has filed with the SEC to register the iShares Bitcoin Managed Protection ETF under the ticker PBIT. The proposed fund uses call options to cushion against sharp declines, limiting loss exposure to roughly 10% while capping upside gains.
Key facts
- BlackRock filed to register the iShares Bitcoin Managed Protection ETF (PBIT), which would be its third U.S. bitcoin-linked ETF.
- PBIT will not own bitcoin directly, instead holding cash, debt, and call options referencing IBIT and similar products.
- The fund utilizes rolling tranches of call spreads to establish a loss floor of roughly 10% before fees in exchange for capped upside.
Source excerpt · Unchained
The proposed iShares Bitcoin Managed Protection ETF would use options on IBIT to limit each tranche's starting loss to about 10%, in exchange for a ceiling on gains. The post BlackRock Files for Bitcoin ETF That Trades Capped Gains for a 10% Loss Floor appeared first on Unchained .