TechFlow news — On December 2, according to the Financial Times, four asset management firms, including Grayscale, have filed applications with U.S. regulators to launch Bitcoin ETF products that use derivatives to reduce or hedge risks. Details are as follows:
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Calamos Investments has applied for four managed in-house ETFs;
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First Trust Portfolios has applied for a 15% in-house ETF and a buffer ETF designed to protect against the first 30% of losses;
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Innovator ETFs has applied for a 10% buffer product with a three-month operating cycle and a 20% managed in-house ETF with a "participation rate" over a three-month period;
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Grayscale Investments plans to launch a covered call Bitcoin ETF, generating regular premium income by selling call options on spot Bitcoin ETFs;
Currently, these ETFs face challenges such as position limits on options. The Chicago Options Exchange is preparing to launch Bitcoin index options with higher position limits, which could provide greater capacity for product structures. If approved, these ETFs could debut as early as February next year.
Todd Rosenbluth, head of research at TMX VettaFi, said that given Bitcoin's strong performance this year, many investors have missed opportunities due to concerns about volatility. These ETF products with downside protection will allow more investors to participate in the Bitcoin market in a risk-controlled manner.
