Bloomberg ETF analyst James Seyffart said that PBIT would mark BlackRock’s third Bitcoin ETF filing, although similar “buffered” Bitcoin funds already exist from Calamos, First Trust and Innovator.
PBIT would use three overlapping sets of options contracts, typically replacing one each month, to seek downside protection while limiting potential gains
Related: US Bitcoin ETFs draw $527M in biggest showing since September Each options tranche would initially target a maximum loss exposure of about 10% to the underlying Bitcoin-linked asset, before fees and expenses. BlackRock cautioned that the fund “does not provide a fixed Tranche Protection Start Value, Floor or Tranche Cap Value,” implying investors could face greater losses. Magazine: Can the SEC and CFTC’s pro-crypto rules be overturned?
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