BlackRock Wants to Give Bitcoin Investors ‘Downside Protection’ With New ETF: Here’s How It Works

BlackRock Inc. has filed for a new Bitcoin exchange-traded fund (ETF) named the iShares Bitcoin Managed Protection ETF, which aims to provide investors with both upside exposure to the iShares Bitcoin Trust ETF (IBIT) and a layer of downside protection. The fund will utilize call options on IBIT and hold fixed-income investments to generate interest income and mitigate potential losses. Currently, IBIT is the largest cryptocurrency investment vehicle with over $66 billion in net assets and recently attracted $665 million in net inflows.