BlackRock, the world's largest asset management company, is seeking to expand its crypto fund product line and plans to launch a Bitcoin Exchange-Traded Fund (ETF) that aims to limit upside gains while providing limited downside protection.

IBIT is the largest Bitcoin spot fund in the world based on asset size. The fund directly holds Bitcoin and allows investors to gain exposure through brokerage accounts. According to data from BlackRock, as of Monday, the fund's net assets amounted to $65.7 billion.

President ETF Store and Nate Geraci raised doubts about BlackRock's continued absence from tracking the spot market of other cryptocurrencies ETF.

Geraci wrote on X on Monday: 'I'm still quite surprised that they didn't participate in the spot ETF such as SOL, XRP, HYPE, etc.' He also stated: 'It's obvious that BlackRock is currently only highly confident in persisting with its layout of BTC and ETH.'

BlackRock expands its capacity by increasing the ETF strategy rather than adding new crypto assets.

BlackRock launched IBIT in January 2024, entering the US Bitcoin spot ETF market; in July of the same year, it also introduced ETHA.

BlackRock's current crypto ETF product line includes two Bitcoin funds and two Ethereum funds.

Bloomberg analyst James Seyffart stated that PBIT will mark BlackRock's third application for a Bitcoin ETF fund, although Calamos, First Trust, and Innovator have already launched similar “buffered” Bitcoin funds.

PBIT will use three sets of overlapping option contracts, typically replacing one set each month, in order to seek downside protection while limiting potential gains.

The goal of each option tier in the initial phase is to control the maximum loss exposure to Bitcoin-linked assets at around 10% before deducting fees and expenses. However, BlackRock warns that the fund “does not provide a fixed starting value for tiered protection, a bottom line, or a tiered upper limit,” which means that investors may face greater losses.