Markets & Finance20 Oct 2026 · about 6 min

BlackRock files for third Bitcoin ETF, still no Solana or XRP

The brief

BlackRock filed a preliminary prospectus with the SEC for the iShares Bitcoin Managed Protection ETF, ticker PBIT. It is designed to offer a different trade-off from ordinary Bitcoin exposure. PBIT would seek some downside protection, but investors would give up unlimited upside potential. IBIT, BlackRock’s existing Bitcoin ETF, holds Bitcoin directly. It gives investors Bitcoin exposure through brokerage accounts. PBIT would instead use options contracts linked to IBIT, the underlying Bitcoin fund. The proposed structure would use three overlapping groups of options, with one group typically replaced each month. Each options group would initially target a maximum loss exposure of about 10% before fees and expenses. However, PBIT would not promise a fixed floor or cap. BlackRock already offers IBIT, while PBIT would add an options-based strategy rather than another direct-holding Bitcoin fund.

What exactly has BlackRock filed for, and how would the proposed PBIT Bitcoin ETF differ from its existing IBIT fund?

IBIT, BlackRock’s existing Bitcoin ETF, holds Bitcoin directly. It gives investors Bitcoin exposure through brokerage accounts. PBIT would instead use options contracts linked to IBIT, the underlying Bitcoin fund. The proposed structure would use three overlapping groups of options, with one group typically replaced each month.

Each options group would initially target a maximum loss exposure of about 10% before fees and expenses. However, PBIT would not promise a fixed floor or cap. BlackRock already offers IBIT, while PBIT would add an options-based strategy rather than another direct-holding Bitcoin fund.

How would PBIT use options linked to IBIT instead of holding Bitcoin directly?

Options are contracts whose value can be tied to an underlying asset. For PBIT, that underlying exposure would be BlackRock’s IBIT Bitcoin ETF, rather than Bitcoin held directly by PBIT. This lets the fund build a planned risk-and-return profile around Bitcoin’s price movements.

The proposed fund would use three overlapping sets of options contracts. Each set would typically be replaced once a month. Every tranche would initially target maximum loss exposure of about 10% to the underlying Bitcoin-linked asset, before fees and expenses. The options would also limit how much of a rise investors could capture.

This design makes PBIT different from IBIT’s direct-holding approach. It is an added strategy, not a new cryptocurrency exposure. BlackRock cautions that PBIT will not have a fixed protection start value, floor, or cap value, so the intended protection is not an absolute guarantee.

What do “limited downside protection” and “capped gains” mean for someone investing in PBIT?

Limited downside protection means PBIT would try to reduce the effect of some Bitcoin-linked losses. Capped gains means investors would not receive every dollar of a strong rise. The fund trades some upside potential for an attempt at a more controlled result.

For example, each options tranche would initially target maximum loss exposure of about 10% to the underlying Bitcoin-linked asset, before fees and expenses. If Bitcoin rises sharply, the options structure could restrict PBIT’s gains. If Bitcoin falls, the strategy would seek protection around the targeted loss level.

That target is not a guaranteed floor. BlackRock says PBIT does not provide a fixed Tranche Protection Start Value, Floor, or Tranche Cap Value. Investors could therefore face greater losses than the target suggests. The final experience would depend on the options, fees, expenses, and the fund’s specific terms.

How large are BlackRock’s existing IBIT Bitcoin ETF and ETHA Ether ETF, and what does that indicate about their importance?

BlackRock’s existing funds are large by the figures provided. IBIT, its spot Bitcoin ETF, had $65.7 billion in net assets as of Monday. ETHA, its spot Ether ETF, had $8 billion. These assets represent money invested in the funds, not the market value of every crypto product.

IBIT holds Bitcoin directly and gives investors exposure through brokerage accounts. ETHA is BlackRock’s spot Ether fund. Together, the figures show that BlackRock’s initial focus on Bitcoin and Ether has attracted substantial assets. IBIT is also described as the world’s largest spot Bitcoin ETF by assets.

The scale helps explain why BlackRock’s next filing matters. PBIT would build on an existing Bitcoin platform rather than starting with a new cryptocurrency. Its proposed options strategy could broaden how investors access Bitcoin, while BlackRock continues to avoid US spot ETFs for Solana and XRP.

Which cryptocurrency ETFs does BlackRock currently offer, and which major cryptocurrencies—such as Solana and XRP—does it not yet track?

BlackRock’s lineup includes IBIT, the iShares Bitcoin Trust ETF, and ETHA, the iShares Ethereum Trust ETF. It later added ETHB, the iShares Staked Ethereum Trust ETF, and BITA, the iShares Bitcoin Premium Income ETF. PBIT is proposed, not yet part of the launched lineup described here.

The funds use different approaches. IBIT holds Bitcoin directly. ETHA offers spot Ether exposure, while ETHB adds staking rewards to Ether exposure. BITA is designed to generate income through options trading. PBIT would add another options-based Bitcoin strategy, with potential downside protection and capped gains.

BlackRock has not launched US spot ETFs tracking Solana or XRP. ETF Store president Nate Geraci also mentioned HYPE when questioning the firm’s absence from other spot crypto ETFs. The current pattern shows a strong focus on Bitcoin and Ether, at least for now.

How has BlackRock’s US crypto ETF lineup developed since it launched IBIT in January 2024?

BlackRock entered the US spot Bitcoin ETF market in January 2024 with IBIT. That fund holds Bitcoin directly and became the world’s largest spot Bitcoin ETF by assets. The firm then broadened its crypto offerings beyond a single Bitcoin product.

In July 2024, BlackRock launched ETHA, a spot Ether fund. In March 2026, it added ETHB, which offers Ether exposure and staking rewards. In June, it followed with BITA, designed to generate income through options trading. The article also describes PBIT as its third Bitcoin ETF filing.

The development has focused on new strategies for Bitcoin and Ether rather than new crypto assets. BlackRock has not launched US spot ETFs tracking Solana or XRP. PBIT would continue that pattern by using options linked to IBIT instead of directly introducing another cryptocurrency fund.

What is an exchange-traded fund, and how can it give investors exposure to Bitcoin through a brokerage account without requiring them to hold Bitcoin themselves?

An exchange-traded fund is a pooled investment fund whose shares trade on an exchange. Investors can generally buy and sell those shares through a brokerage account, like other exchange-traded securities. The fund holds assets or uses contracts to create the investment exposure it promises.

IBIT illustrates the arrangement. BlackRock’s fund holds Bitcoin directly, while investors buy shares of IBIT rather than taking possession of Bitcoin themselves. Their brokerage accounts provide the route to the fund. The article describes IBIT as giving investors Bitcoin exposure through brokerage accounts.

This structure can make access simpler for investors who want exposure without directly holding Bitcoin. It also means their investment follows the fund’s structure and terms. PBIT would use the same exchange-traded format but would rely on options linked to IBIT, seeking protection and capped gains instead of directly holding Bitcoin.

This brief was written by AI from the original reporting and checked by other models. Names, figures and quotes come from the source; read it for full context.