CoinVoice has learned that four asset management companies have submitted applications to U.S. regulators to create investment Bitcoin ETFs, but using derivatives to minimize or completely hedge potential losses.
Calamos Investments has applied for four managed exchange-traded funds (ETFs). First Trust Portfolios has applied to establish a 15% floor ETF and a buffered ETF aimed at hedging against the first 30% of losses. Innovator ETFs is striving to launch a three-month buffered product with a yield of 10%. The company has also applied to launch a three-month managed exchange-traded fund (ETF) with a yield of 20%, setting a 'participation rate'. Grayscale Investments also plans to launch a covered call Bitcoin ETF, which will sell call options on the spot Bitcoin ETF. This will reduce the potential price appreciation when Bitcoin rises, but can provide regular premium income. [Original link]
