iShares Proposes Bitcoin (BTC) Fund With Options-Based Downside Protection
Photo: TokenPost
An Oct. 19 filing by iShares Trust proposes a Bitcoin (BTC) fund that would combine exposure to the asset with options-based downside protection, while limiting potential gains. The proposed iShares Bitcoin Managed Protection ETF (PBIT) would use overlapping options tranches. Each tranche would typically begin with a protection level near 90% of its reference asset’s value when its options are acquired. That leaves about 10% initial loss exposure to the reference asset before fees and expenses; it is not a stated maximum-loss limit for PBIT investors.
Source: TokenPost
