BlackRock files for Bitcoin protected ETF with initial loss threshold of about 10% per batch

Odaily reports: BlackRock, the world's largest asset manager, submitted a registration statement to the U.S. Securities and Exchange Commission (SEC) on October 19 to launch the iShares Bitcoin Managed Protection ETF, ticker PBIT.

The fund intends to obtain returns linked to the iShares Bitcoin Trust ETF (IBIT) or similar Bitcoin-related assets through options and fixed-income investments, without directly holding Bitcoin or a Bitcoin ETF. The initial loss threshold for each batch is approximately 10% of the reference asset's starting value.

This threshold does not guarantee that shareholders will lose no more than 10%; the threshold may change, and if calculated from a higher market value, actual losses could exceed the initial limit. Shareholders may still lose some or all of their investment.

The fund will limit potential gains during upswings by selling call options, and will allocate to cash, money market funds, short-term government debt, and investment-grade fixed-income securities. The amendment to the existing registration statement is proposed to take effect 75 days after October 19, and the management fee has not yet been determined. (Bitcoin.com News)