BlackRock Files Application for Bitcoin Drop-Protected ETF

BlackRock has filed an application with the SEC to launch a new investment fund that combines participation in the growth of Bitcoin's value with protection against a decline in its price.

The new iShares Bitcoin Managed Protection ETF product is linked to the performance of the spot Bitcoin ETF IBIT. The fund's mechanism allows investors to profit from an increase in the BTC rate while simultaneously limiting potential losses in case of a decline in the asset.

The feature of the offer lies in the compromise between capital protection and profitability. In exchange for limiting risks, the potential profits for investors will also be capped at a certain level.

The application was submitted to the U.S. Securities and Exchange Commission on October 19. At this time, the project is in the planning stage, and the official launch of the product has not yet been confirmed by regulators.