BlackRock’s proposed Bitcoin fund would use options to limit potential losses and gains, adding another strategy to its existing Bitcoin and Ether ETF lineup.

BlackRock, the world’s largest asset manager, is looking to expand its crypto fund lineup with a Bitcoin exchange-traded fund (ETF) that offers limited downside protection in exchange for capped gains.

The world’s largest asset manager on Monday filed a preliminary prospectus with the US Securities and Exchange Commission for the iShares Bitcoin Managed Protection ETF (PBIT).

The proposed ETF would use options linked to BlackRock’s iShares Bitcoin Trust ETF (IBIT) rather than holding Bitcoin (BTC) directly, according to the preliminary prospectus filed with the US Securities and Exchange Commission (SEC).

IBIT is the world’s largest spot Bitcoin ETF by assets. It holds Bitcoin directly and gives investors exposure through brokerage accounts. The fund had $65.7 billion in net assets as of Monday, according to BlackRock.

BlackRock also runs the iShares Ethereum Trust ETF (ETHA), a spot Ether fund with $8 billion in net assets. The asset manager has yet to launch US spot ETFs tracking other cryptocurrencies such as Solana or XRP.

ETF Store president Nate Geraci questioned BlackRock’s continued absence from the market for spot ETFs tracking other cryptocurrencies.

“Still shocked they’re sitting out on spot ETFs for SOL, XRP, HYPE, etc,” Geraci wrote on X on Monday. “BlackRock clearly has high conviction in only sticking [with] BTC [and] ETH. For now,” he added.

BlackRock adds ETF strategies instead of new crypto assets

BlackRock entered the US spot Bitcoin ETF market in January 2024 with the launch of IBIT, followed by the ETHA in July that year.

In March 2026, its offerings expanded with the iShares Staked Ethereum Trust ETF (ETHB), which offers exposure to Ether and staking rewards. It was followed by the iShares Bitcoin Premium Income ETF (BITA) in June, designed to generate income through options trading.

Bloomberg ETF analyst James Seyffart said that PBIT would mark BlackRock’s third Bitcoin ETF filing, although similar “buffered” Bitcoin funds already exist from Calamos, First Trust and Innovator.

PBIT would use three overlapping sets of options contracts, typically replacing one each month, to seek downside protection while limiting potential gains.

Related: US Bitcoin ETFs draw $527M in biggest showing since September

Each options tranche would initially target a maximum loss exposure of about 10% to the underlying Bitcoin-linked asset, before fees and expenses. BlackRock cautioned that the fund “does not provide a fixed Tranche Protection Start Value, Floor or Tranche Cap Value,” implying investors could face greater losses.

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