According to BlockBeats, on December 2, four asset management companies have submitted applications to US regulators to create ETFs for investing in Bitcoin, using derivatives to minimize or completely prevent potential losses.
Todd Rosenbluth, head of research at consulting firm TMX VettaFi, stated: 'Given Bitcoin's rapid rise this year, many investors may regret missing the opportunity due to concerns about cryptocurrency volatility. These upcoming down-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 buffer ETF aimed at preventing any losses in the first 30%. Innovator ETFs is applying for a 10% buffering 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.'
In addition, 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 the potential price appreciation gains but will provide regular premium income. (FT)
