BlackRock to Launch Bitcoin Buffer ETF PBIT in 2027

Original | Odaily Planet Daily (@OdailyChina)

Author | jk

Recently, BlackRock’s iShares Trust filed Form 485APOS to launch the iShares Bitcoin Managed Protection ETF, proposed to trade under the ticker symbol PBIT.

This fund is a buffered ETF registered under the Investment Company Act of 1940; it does not hold bitcoin or bitcoin ETPs directly, but instead constructs a call spread—buying an in-the-money call option and selling a higher-strike call option—with IBIT as the reference asset, while allocating to short-duration fixed-income assets. The maximum initial loss for each options batch is approximately 10%, and upside gains are capped at the strike price of the sold call option.

In other words, this product has a defined downside limit and an upside cap, making it specifically designed for "old money" investors who wish to invest in digital assets without taking on excessive risk. The product is scheduled to launch in January 2027. Currently, the listing exchanges, issuance date, management fee, and total expense ratio have not been disclosed.

What is PBIT?

PBIT is an actively managed ETF advised by BlackRock Fund Advisors. The investment objective stated in the prospectus is to provide upside participation in IBIT and/or similar Bitcoin exposure while seeking a degree of downside protection.