PANews December 2 news, according to (Financial Times) reports, four asset management companies have submitted applications to the U.S. Securities and Exchange Commission (SEC) to launch Bitcoin ETFs that use derivatives to reduce or protect investors from losses. These ETFs include Buffer ETFs and Managed Floor ETFs. Institutions such as Calamos Investments, First Trust Portfolios, and Innovator ETFs have applied for products with different levels of protection, including a buffer ETF that protects against 30% losses and a managed floor ETF with a three-month term. Grayscale plans to launch an ETF that sells call options covering Bitcoin spot ETFs, which sacrifices some price appreciation potential but provides stable premium income.
Currently, the challenges faced by these ETFs include limitations on options positions. The Chicago Board Options Exchange is set to launch Bitcoin index options with higher position limits, which may provide greater capacity for product structure. If approved, these ETFs could be listed as early as February next year.
