BlackRock Files For Bitcoin ETF With Managed Downside Protection

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing Strict editorial policy that focuses on accuracy, relevance, and impartiality Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. TL;DR: BlackRock has proposed another Bitcoin-linked ETF, this time using options to pursue some protection against losses while giving up part of the potential upside. BlackRock’s latest Bitcoin fund filing takes a different approach from the familiar buy-and-hold exposure offered by its iShares Bitcoin Trust. Instead of simply following the price of Bitcoin, the proposed iShares Bitcoin Managed Protection ETF would use an options strategy linked to IBIT or similar exposure. The ambition is straightforward enough: participate in some of Bitcoin’s gains and seek a measure of protection during a decline. The trade-off is equally important. Gains could be capped, and the protection is neither unconditional nor guaranteed. The structure is designed around overlapping options positions, meaning an inv...