BlackRock Files to Launch iShares Bitcoin Managed Protect ETF

BlackRock filed on Monday to launch the iShares Bitcoin Managed Protect ETF, a structured product designed to cap downside losses on $BTC while allowing investors to participate in price gains ¹. The move follows the asset manager's prospectus filings expanding its digital asset lineup beyond pure spot holdings ¹. At the time of writing, Bitcoin was trading at $82,929.

According to the regulatory registration, the fund intends to provide upside exposure to the iShares Bitcoin Trust (IBIT) or comparable instruments up to a defined ceiling, paired with a specified degree of downside protection ¹. BlackRock did not disclose the precise protection threshold or the upside cap in the initial filing ¹. The fund is designed to build directly upon the flagship IBIT fund, which currently holds over $65 billion in assets under management ¹.

Following the Structured Route

The structure mirrors strategies pioneered by Calamos Investments, which introduced three buffered bitcoin ETFs in early 2025 offering full protection or downside limits of 10% to 20% over designated outcome periods ¹. Calamos allocates approximately 90% of portfolio assets into US Treasuries and deploys the remainder into bitcoin-linked options ¹. A Calamos spokesperson noted that its Bitcoin Structured Alt Protection ETF – October (CBOO) declined 1% across its one-year period starting in October 2025, during which Bitcoin dropped as much as 52% from an all-time peak near $126,000 ¹. Calamos ETF head Matt Kaufman stated in May that its protected lineup drew $10 million to $15 million over several weeks despite broader spot fund outflows ¹.

The planned fund marks BlackRock's second major derivative-oriented crypto strategy this year ¹. In June, the manager rolled out the Bitcoin Premium Income Fund (BITA), an income vehicle holding Bitcoin and IBIT while writing call options against 25% to 35% of the portfolio ¹. Jay Jacobs, BlackRock's US head of equity ETFs, noted at launch that investors increasingly seek yield and risk mitigation while maintaining long-term exposure ¹.