BlackRock launches options-hedged Bitcoin ETF, expands crypto lineup

BlackRock has filed with the U.S. Securities and Exchange Commission for a third Bitcoin exchange‑traded fund (ETF). The new product would join the firm's existing Bitcoin and Ether ETFs and would be the first to incorporate a hedging strategy that uses options contracts.

ETF Hedging Strategy

The options‑based approach is designed to cap both potential losses and gains, offering a more controlled exposure to Bitcoin’s price swings. By limiting downside risk, the fund could appeal to investors who seek exposure to the cryptocurrency without the full volatility of an unhedged ETF.

BlackRock already offers a Bitcoin ETF and an Ether ETF, both of which have attracted significant investor interest. Adding a third product expands the firm's crypto‑asset footprint and provides another vehicle for institutional participation.

Despite the new filing, BlackRock has not yet submitted proposals for Solana or XRP ETFs, leaving those assets outside the current lineup.

The introduction of an options‑hedged Bitcoin ETF may influence the broader ETF market by setting a new risk‑management benchmark. Traders and asset managers might monitor the fund’s performance for clues about how hedging strategies affect Bitcoin pricing and investor flow.

Based on reporting from Cointelegraph. Read the original.