BlackRock Files for Bitcoin ETF Designed to Limit Investor Losses

BlackRock has filed with the SEC to launch a structured bitcoin exchange-traded fund (ETF) designed to protect investors from losses while allowing participation in price gains.

The proposed fund, filed on Monday, follows a similar model to existing protected bitcoin ETFs from Calamos Investments. According to the report, one Calamos fund, the Bitcoin Structured Alt Protection ETF – October (CBOO), lost only about 1% since October 2025, even as the price of bitcoin itself fell more than 50% from its peak during that period.

This new filing represents an expansion of BlackRock’s bitcoin product suite beyond simple spot price tracking funds. In June, the asset management giant introduced a bitcoin income ETF, signaling a strategic move to offer more sophisticated, risk-managed crypto investment vehicles to its client base.

The structured ETF strategy typically uses options contracts to create a buffer against downside risk, capping potential losses in exchange for also capping some upside gains. The filing highlights growing institutional demand for cryptocurrency exposure with built-in capital protection mechanisms, especially following bitcoin’s significant price volatility over the past year.