According to BlockBeats, on December 2, four asset management companies submitted applications to U.S. regulators to create ETFs that invest in Bitcoin, using derivatives to reduce or prevent potential losses.
TMX VettaFi research director Todd Rosenbluth stated that these downside protection ETFs would allow more investors to add Bitcoin exposure to their portfolios in a risk-aware manner.
Calamos Investments applied for four actively managed ETFs. First Trust Portfolios applied for a 15% actively managed ETF and a buffered ETF that protects against the first 30% of losses.
Innovator ETFs applied for a 10% buffered product and a 20% three-month actively managed ETF. Grayscale Investments plans to launch a covered call Bitcoin ETF, selling call options on a spot Bitcoin ETF.
