BlackRock seeks to shield bitcoin investors from losses after rival fund weathers 50% crash
BlackRock has filed to launch the iShares Bitcoin Managed Protect ETF, aiming to provide investors with exposure to bitcoin while mitigating downside risk. This move follows similar structured products from Calamos that use options and Treasury holdings to hedge against cryptocurrency volatility.
Why it matters
As institutional interest in crypto grows, major asset managers are increasingly creating products that bridge the gap between volatile digital assets and traditional risk-managed investment strategies.
The Naperville, Illinois-based firm's Bitcoin Structured Alt Protection ETF – October (CBOO) dropped just 1% since the start of its one-year protection period in October 2025, according to a Calamos spokesperson. The largest cryptocurrency, in contrast, tumbled as much as 52% from its record high of roughly $126,000.
Now BlackRock (BLK), the world's largest asset manager, wants to offer investors a similar way to protect themselves from bitcoin's price swings.
On Monday, the firm filed to introduce the iShares Bitcoin Managed Protect ETF, which would give investors exposure to bitcoin's gains while seeking to limit losses when the cryptocurrency falls.
"The Fund seeks to provide upside exposure to the iShares Bitcoin Trust ETF and/or similar bitcoin exposure up to an approximate limit, while seeking to provide a level of downside protection," BlackRock said in the filing.
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