Blackrock filed a registration statement with the U.S. Securities and Exchange Commission on Oct. 19 for the proposed Ishares Bitcoin Managed Protection ETF (PBIT). The preliminary prospectus prohibits sales until the registration becomes effective; the filing proposes an effective date 75 days after Oct. 19.
PBIT would use options and fixed-income securities rather than directly hold bitcoin or bitcoin exchange-traded products. Its strategy would initially limit losses to about 10% of the reference asset’s starting value for each set of options, before expenses, but that is not a guaranteed maximum loss for shareholders. Shareholders could lose some or all of their investment, and the options would cap potential gains.
