Grayscale and three other asset management companies have applied to U.S. regulators for a 'risk-averse' Bitcoin ETF

Odaily Planet Daily News Four asset management companies have submitted applications to U.S. regulators to create ETFs for investing in Bitcoin, but using derivatives to minimize or completely prevent potential losses. Todd Rosenbluth, head of research at consulting firm TMX VettaFi, stated: "Given the rapid rise in Bitcoin this year, many investors may regret missing the opportunity as they are concerned about the volatility of cryptocurrencies. These upcoming downside protection ETFs will allow more people to add Bitcoin exposure to their portfolios in a risk-aware manner." Specifically, Calamos Investments has applied for four managed on-exchange ETFs (floor ETFs). First Trust Portfolios has applied for a 15% on-exchange ETF and a buffered ETF aimed at mitigating the first 30% of any losses. Innovator ETFs is applying for a 10% buffered product that will operate within three months. On the other hand, it has also applied for a 20% three-month managed on-exchange ETF with a set “participation rate.” Additionally, Grayscale Investments plans to launch a covered call Bitcoin ETF, which will sell call options on the spot Bitcoin ETF. If Bitcoin rises, this will reduce potential price appreciation gains but will provide regular premium income. (FT)