BlackRock seeks to shield bitcoin investors from losses after rival fund weathers 50% crash
BlackRock's proposed fund follows similar products from Calamos that helped investors avoid steep losses during bitcoin's selloff.
BlackRock is seeking to protect bitcoin investors from significant losses, following a rival fund's success in shielding investors from substantial declines. Calamos Investments' Bitcoin Structured Alt Protection ETF - October (CBOO) experienced only a 1% drop since October 2025, despite the overall cryptocurrency market's 52% plunge from its peak.
Recognizing this opportunity, BlackRock, the world's largest asset manager, has filed to introduce the iShares Bitcoin Managed Protect ETF. This new fund aims to provide investors with exposure to bitcoin's gains while limiting potential losses during downward price swings. BlackRock's proposed fund would build upon its popular iShares Bitcoin Trust (IBIT) ETF, which oversees over $65 billion in assets.
However, the specifics of the new fund's downside protection and upside potential have not been disclosed. Calamos achieved this strategy by allocating 90% of its portfolio to U.S. Treasuries and investing the remainder in bitcoin-linked options. This has proven popular with investors, as the protected bitcoin funds have attracted between $10 million and $15 million in assets over several weeks, even as spot bitcoin ETFs have seen outflows.
Additionally, BlackRock has ventured into other bitcoin-related investments, such as its Bitcoin Premium Income Fund, which generates monthly income through selling call options on a portion of its portfolio.
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