Funding
BlackRock Files for Bitcoin Fund Using Derivatives
BlackRock has filed with the SEC for the iShares Bitcoin Managed Protection ETF (PBIT), a fund that would hold options and fixed-income securities to gain Bitcoin exposure through derivatives. The fund excludes direct Bitcoin and spot Bitcoin ETP holdings. Any additional spot Bitcoin demand would depend on dealer hedging. The filing registers the proposed fund under the Investment Company Act of 1940, and the prospectus describes three overlapping long call-spread tranches with staggered monthly starts, each typically replacing itself each month. Dealers who sell PBIT's options could hedge by trading IBIT shares or Bitcoin futures, or they could net the risk against positions they already hold. The prospectus acknowledges that PBIT's use of IBIT options could increase IBIT's assets and fees to BlackRock affiliates.