BlackRock Seeks Third Spot Bitcoin ETF as Solana and XRP Wait

BlackRock is preparing a new Bitcoin exchange-traded fund concept that leans on options rather than adding more spot holdings. The company filed a preliminary prospectus with the US Securities and Exchange Commission (SEC) for the iShares Bitcoin Managed Protection ETF (PBIT), a fund structure designed to provide limited downside protection while capping potential upside.

According to the filing made public on the SEC website, PBIT would seek its risk-management goals by using options tied to BlackRock’s existing iShares Bitcoin Trust ETF (IBIT), instead of holding Bitcoin directly. IBIT is currently the largest spot Bitcoin ETF by net assets, with $65.7 billion as of Monday, per BlackRock’s product page.

Key takeaways

• BlackRock filed for the iShares Bitcoin Managed Protection ETF (PBIT), aiming to deliver downside protection via Bitcoin-linked options.
• PBIT is expected to reference IBIT rather than hold Bitcoin directly, according to the preliminary prospectus.
• The fund would use overlapping option contracts to target a maximum loss exposure of about 10% per tranche before fees and expenses.
• Upside would be capped, and BlackRock warns it does not guarantee fixed floor or cap values, leaving room for outcomes to differ from simple “buffer” assumptions.
• ETF analyst Nate Geraci questioned BlackRock’s lack of additional spot ETF products beyond Bitcoin and Ether.

What BlackRock filed with the SEC

BlackRock filed the preliminary prospectus for PBIT with the SEC on Monday, according to the SEC filing. The application frames the ETF as a managed protection product—an approach that uses structured option strategies to alter a fund’s return profile compared with straightforward spot exposure.

Rather than purchasing Bitcoin, the proposed ETF would employ options linked to IBIT, BlackRock’s spot Bitcoin ETF. IBIT is widely treated as the main reference point for spot Bitcoin exposure inside brokerage accounts, and BlackRock’s filings typically rely on its existing infrastructure when introducing related strategies.

How “managed protection” is intended to work

ETF “buffer” or “managed protection” products generally aim to reduce losses during adverse moves by giving up some upside potential. PBIT appears to follow that playbook, using options contracts to target downside limits while restricting gains.

In the prospectus, BlackRock indicates the strategy would use three overlapping sets of options contracts, with replacements typically occurring on a monthly basis. This rolling setup is meant to keep the fund continuously positioned rather than concentrated in a single options expiration window.

BlackRock also describes an initial target for tranche-level risk: each options tranche would be structured to seek a maximum loss exposure of about 10% to the underlying Bitcoin-linked asset, before fees and expenses. However, the filing includes an important caution—BlackRock says the fund “does not provide a fixed Tranche Protection Start Value, Floor or Tranche Cap Value.”

For investors, that distinction matters. A stated “maximum loss” objective can be helpful as a baseline, but the absence of fixed floor or cap guarantees means real-world outcomes may deviate from a simple percentage buffer narrative, depending on how option terms, timing, volatility, and underlying performance interact.

Where PBIT fits in BlackRock’s crypto ETF lineup

BlackRock entered the US spot Bitcoin ETF market in January 2024 with IBIT, followed by the iShares Ethereum Trust ETF (ETHA) in July of the same year. Its crypto lineup later expanded with additional strategy-focused products. In March 2026, BlackRock launched the iShares Staked Ethereum Trust ETF (ETHB), which provides exposure to Ether and staking rewards. In June 2026, the firm followed with the iShares Bitcoin Premium Income ETF (BITA), a product designed to generate income through options trading.

PBIT, if approved, would represent another step in that evolution—this time, moving further into “outcome-shaped” derivatives strategies rather than directly adding new spot exposure. Bloomberg ETF analyst James Seyffart indicated on X that PBIT would be BlackRock’s third Bitcoin ETF filing, while buffered Bitcoin products already exist from other issuers, including Calamos, First Trust, and Innovator. The key competitive difference is likely to be how each product structures its protection mechanics, caps, costs, and tranche behavior over time.

Why some in the ETF market are asking about “missing” tokens

While the filing keeps BlackRock’s focus on Bitcoin (with references to IBIT) and fits within the firm’s established approach, it also reignites questions about why the issuer has not broadly expanded into additional spot crypto assets beyond BTC and ETH.

ETF Store president Nate Geraci publicly questioned BlackRock’s absence from spot ETF products tracking cryptocurrencies such as Solana or XRP. In a post on X on Monday, Geraci wrote: “Still shocked they’re sitting out on spot ETFs for SOL, XRP, HYPE, etc,” adding that BlackRock appears to be concentrating on BTC and ETH for now.

Geraci’s comment underscores a broader tension in the market: demand for multi-asset exposure versus issuers’ preference for deploying capital and regulatory risk into a smaller set of assets where they already have scale, liquidity, and an established product framework.

What investors should watch next

PBIT’s fate will depend on SEC review and the specifics of how the final product terms are finalized. If approved, traders and long-term investors alike will likely scrutinize how closely the fund’s “managed protection” mechanics track the 10% tranche loss objective in different volatility regimes, and whether the absence of fixed floor or cap terms becomes a practical differentiator versus simpler interpretations of downside buffering.