Bitcoin ETF · Bitcoin · Decrypt
BlackRock Files for 'Buffer' Bitcoin ETF as IBIT Draws $665 million in a Day
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BlackRock has filed to launch a "buffer" Bitcoin ETF that would cap investors' gains in exchange for limiting their losses, according to a filing with the Securities and Exchange Commission on Monday.
Key facts
- Monday's inflow followed a run of selling, in which U.S. spot Bitcoin ETFs shed about $910 million over the previous two weeks, including $228.6 million last week and $681.1 million the week
- Since launching in January 2024, the funds have drawn $57.4 billion in cumulative net inflows and now hold $105.46 billion in net assets, according to SoSoValue
- The filing came as BlackRock’s IBIT, the largest spot Bitcoin ETF with $66.37 billion in net assets, took in $665.2 million on Monday, according to SoSoValue
- Each tranche's protection typically starts at about 90% of the reference asset's value, limiting its initial losses to roughly 10% before fees, according to the filing
Summary
BlackRock has filed for the iShares Bitcoin Managed Protection ETF, a "buffer" fund that would trade under the ticker PBIT. The fund would buy and sell options on IBIT and similar bitcoin exposure, typically limiting each tranche's initial losses to about 10% while capping gains. IBIT drew $665.2 million on Monday, the only one of 12 U.S. spot Bitcoin ETFs to post net inflows, according to SoSoValue. The iShares Bitcoin Managed Protection ETF, which would trade under the ticker PBIT, "seeks to provide upside exposure to the iShares Bitcoin Trust ETF (IBIT) and/or similar bitcoin exposure up to an approximate limit, while seeking to provide a level of downside protection," the filing says.