CoinDesk
BlackRock filed Monday for the iShares Bitcoin Managed Protect ETF, a proposed fund designed to give investors exposure to bitcoin gains while seeking to limit losses when the cryptocurrency falls. The filing follows a sharp market test for protected products: Calamos' Bitcoin Structured Alt Protection ETF, CBOO, lost just 1% since its protection period began in October 2025, while bitcoin fell as much as 52% from its roughly $126,000 record high.
Why it matters
The proposal would expand BlackRock's bitcoin lineup beyond funds that simply track the asset's price. Its flagship iShares Bitcoin Trust, or IBIT, manages more than $65 billion and is the largest U.S. spot bitcoin ETF launched in 2024. The new product would seek to preserve upside exposure while adding a defined level of downside protection.
BlackRock's filing does not specify the protection level, the amount of bitcoin upside investors could capture, or the period's cap. Calamos' existing products show one possible structure, with offerings that provide full protection or limit losses to 10% or 20% over a set period. Calamos places roughly 90% of assets in U.S. Treasuries and uses the remainder for bitcoin-linked options.
Market impact
Demand for the strategy has emerged even as spot bitcoin ETFs faced outflows. Calamos said its protected bitcoin ETFs attracted between $10 million and $15 million over several weeks in May. That suggests some investors want continued bitcoin exposure but are unwilling to accept the asset's full drawdown risk.
The filing also fits BlackRock's broader move into outcome-oriented products. In June, it launched the Bitcoin Premium Income Fund, BITA, which holds bitcoin and IBIT shares while selling call options on roughly 25% to 35% of its portfolio to generate monthly income. BlackRock is turning bitcoin exposure into a wider menu of risk and income strategies.
Frequently asked questions
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What is BlackRock's proposed Bitcoin Managed Protect ETF designed to do?
It is designed to provide exposure to bitcoin gains while seeking to limit losses when bitcoin declines over a defined period.
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How did Calamos' protected bitcoin ETF perform during bitcoin's selloff?
CBOO lost just 1% since its protection period began in October 2025, while bitcoin fell as much as 52% from its roughly $126,000 record high.
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Has BlackRock disclosed the proposed fund's protection level?
No. The filing did not specify how much downside protection the fund would offer or how much bitcoin upside investors could capture.
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How do Calamos' protected bitcoin ETFs limit losses?
Calamos places roughly 90% of assets in U.S. Treasuries and uses the remainder for bitcoin-linked options. Its products offer full protection or limit losses to 10% or 20% over a set period.
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How does the filing fit BlackRock's broader bitcoin product strategy?
BlackRock is expanding beyond straightforward price-tracking funds. It also offers BITA, which holds bitcoin and IBIT shares while selling call options on roughly 25% to 35% of its portfolio for monthly income.
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