BlackRock’s IBIT Draws $665.2 Million Amid New Bitcoin ETF Filing

BlackRock’s iShares Bitcoin Trust ETF (IBIT) drew $665.2 million in net inflows on Oct. 19, as iShares Trust filed for a Bitcoin (BTC) fund designed to soften losses while capping gains.

The proposed iShares Bitcoin Managed Protection ETF, identified by the ticker PBIT, would buy and sell options tied to IBIT or similar Bitcoin exposure. Selling options would help cover the cost of those it buys, but would limit potential gains. The fund would also hold fixed-income investments. It would not own Bitcoin or Bitcoin exchange-traded products directly.

The strategy would generally use three sets of options that begin at different times. Purchased options would typically have a strike price near 90% of the reference asset’s value when each set begins, leaving about 10% initial exposure to losses before fees and expenses. The fund could change that level and its cap on gains. Neither would be a fixed limit for shareholders.

Net inflows across U.S. spot Bitcoin ETFs totaled $526.7 million for the Oct. 19 session. That was less than IBIT’s intake because other funds recorded outflows.

The SEC has not approved or disapproved PBIT. The filing proposes that its registration become effective 75 days after Oct. 19; shares cannot be sold before the registration takes effect.