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BlackRock Wants to Protect Bitcoin Investors After a 50% Drop

BlackRock is following Calamos with a protected Bitcoin ETF that aims to soften losses while still capturing some of the upside. IBIT remains the starting point.

By Mike Hesp
• 2 min read
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BlackRock Wants to Protect Bitcoin Investors After a 50% Drop

Key Takeaways

  • BlackRock wants to launch a new Bitcoin fund that should limit losses while still letting investors participate in part of Bitcoin's upside.
  • The filing follows demand for protected Bitcoin products from Calamos, which held up much better during the recent drop.
  • BlackRock's existing iShares Bitcoin Trust manages more than $65 billion and is the largest U.S. spot Bitcoin ETF.

BlackRock wants to launch a new Bitcoin fund that should protect investors from steep losses while still letting them participate in part of Bitcoin's upside. The move follows strong demand for similar protected products from Calamos, which fell much less sharply than the coin itself during Bitcoin's recent drop.

Calamos as an Example

According to a Calamos spokesperson, the Bitcoin Structured Alt Protection ETF - October (CBOO) has fallen just 1% since the protection period began in October 2025. Over the same period, Bitcoin itself lost more than half its value from the record high of about $126,000 (€112,300). That shows why protected Bitcoin funds are attractive to some investors in a shaky crypto market.

Calamos launched its first protected Bitcoin ETFs in early 2025. Those funds offer different levels of downside protection while also capping potential gains. According to the company, that approach also attracted capital when spot Bitcoin ETFs saw outflows.

BlackRock Takes the Next Step

BlackRock filed an application on Monday for the iShares Bitcoin Managed Protect ETF. The fund is meant to give investors exposure to Bitcoin's price while also trying to limit losses if the coin falls. The filing says the fund wants to capture some of Bitcoin's upside while hedging downside risk.

The new structure builds on BlackRock's iShares Bitcoin Trust, better known as IBIT. That fund manages more than $65 billion (€58 billion) and is the largest U.S. spot Bitcoin ETF. BlackRock previously reported that its digital asset funds grew sharply in the third quarter, which further opens the door for new products. BlackRock has also already launched another Bitcoin product, the Bitcoin Premium Income Fund, which tries to generate income with options on Bitcoin and IBIT shares.

Why This Matters

For European crypto investors, this filing shows that big asset managers are increasingly offering Bitcoin in different forms. Not just as pure price exposure, but also with protection or extra income. That could matter for how institutional players view Bitcoin, especially now that the market is looking again for products with less volatility after a steep drop.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.