The iShares Bitcoin Managed Protection ETF is a proposed exchange-traded fund from BlackRock that would trade under the ticker PBIT. It would be a series of iShares Trust managed by BlackRock Fund Advisors. The fund aims to give investors exposure to the iShares Bitcoin Trust ETF (IBIT) up to an approximate cap, with some downside protection. It would not hold bitcoin or IBIT shares directly. Instead it would buy and sell FLEX and standardized call options on IBIT and similar bitcoin products, and hold cash and short-term fixed income alongside them. The shares would list on a U.S. national securities exchange that has not yet been named.

Bitcoin is the largest cryptocurrency by market capitalization. It is a decentralized, proof-of-work network with a fixed supply of 21 million coins. Its price swings can be large, and PBIT’s buffered structure is aimed at investors who want bitcoin exposure with less downside. The fund uses long call spreads in three overlapping tranches, and the tranches start a month apart. Each tranche is set up to limit losses to roughly 10% before fees, while the strike of the sold call caps its upside. Because the tranches overlap and the cap resets with market conditions, the fund has no fixed outcome period, floor or cap.

Unlike spot bitcoin trusts, PBIT would be registered under the Investment Company Act of 1940. It would be a non-diversified fund, and its options would be cleared through the Options Clearing Corporation. The fee has not been disclosed in the preliminary filing. The downside protection is not guaranteed: fees reduce it, losses can exceed 10% if bitcoin rises after a tranche starts and then falls, and gains are capped. Other risks include bitcoin’s volatility, options and counterparty risk, and the uncertain tax treatment of the options. The amendment takes effect 75 days after filing, around early January 2027, and filing it does not mean the fund is approved.