{"id":126493,"date":"2025-04-04T19:16:04","date_gmt":"2025-04-04T19:16:04","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=126493"},"modified":"2025-04-04T19:16:04","modified_gmt":"2025-04-04T19:16:04","slug":"first-trust-launches-bitcoin-strategy-etfs","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=126493","title":{"rendered":"First Trust launches Bitcoin strategy ETFs"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsFirst Trust Advisors has launched two Bitcoin (BTC) strategy exchange-traded funds (ETFs) designed to provide investors with Bitcoin exposure while capping losses and earning yield, the asset manager said.\u00a0<br \/>\nThe move comes amid an outpouring of funds seeking to enhance Bitcoin\u2019s appeal to traditional investors by offering tailored exposure to the cryptocurrency\u2019s performance.<br \/>\nThe FT Vest Bitcoin Strategy Floor15 ETF (BFAP) is designed to track Bitcoin\u2019s performance up to a capped upside while limiting drawdown risk to approximately 15%, First Trust said in an announcement.<br \/>\n\u201cOver the past few years, investors have shown a remarkably strong appetite for bitcoin-linked ETFs, but the potential for sharp drawdowns has kept many on the sidelines,\u201d Ryan Issakainen, an ETF strategist at First Trust, said in a statement.<br \/>\nFirst Trust launched two new Bitcoin strategy funds. Source: First TrustThe FT Vest Bitcoin Strategy &amp; Target Income ETF (DFII) is an actively managed fund aiming to offer partial Bitcoin exposure while generating a yield that beats short-dated US Treasurys by at least 15%, according to the asset manager.\u00a0<br \/>\nThe DFII fund \u201cwill seek to take advantage of bitcoin\u2019s high volatility to generate income by selling call options,\u201d Issakainen said.\u00a0The BFAP fund also uses financial derivatives to hedge downside risk.\u00a0<br \/>\nOptions are contracts granting the right to buy or sell \u2014 \u201ccall\u201d or \u201cput,\u201d in trader parlance \u2014 an underlying asset at a certain price.<br \/>\nRelated:\u00a0Trump-linked Strive files for \u2018Bitcoin Bond\u2019 ETF<br \/>\nStructured Bitcoin funds<br \/>\nLaunched in January 2024, Bitcoin ETFs emerged as one of last year\u2019s hottest investment products.\u00a0<br \/>\nAs of April 4, spot BTC ETFs collectively manage approximately $93 billion in assets, according to data from Bitbo.\u00a0<br \/>\nBitcoin ETFs saw outflows after US President Trump announced tariffs. Source: Farside InvestorsOther types of ETFs designed to offer tailored exposure to Bitcoin\u2019s performance are also gaining popularity.\u00a0<br \/>\nOn April 2, Grayscale \u2014 a cryptocurrency-focused asset manager \u2014 launched two Bitcoin strategy ETFs.\u00a0Like First Trust\u2019s ETFs, they use financial derivatives to optimize for downside risk management and income generation.\u00a0<br \/>\nIn March, asset manager Bitwise launched an ETF holding stocks of companies with large Bitcoin treasuries.\u00a0<br \/>\nSpot BTC ETFs saw nearly $100 million in outflows on April 3 amid the heightened market volatility following US President Donald Trump\u2019s tariff announcement of sweeping tariffs on April 2.\u00a0<br \/>\nMagazine:\u00a0Bitcoin ATH sooner than expected? XRP may drop 40%, and more: Hodler\u2019s Digest, March 23 \u2013 29<a href=\"https:\/\/cointelegraph.com\/news\/first-trust-launches-bitcoin-strategy-etfs?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsFirst Trust Advisors has launched two Bitcoin (BTC) strategy exchange-traded funds (ETFs) designed to provide investors with Bitcoin exposure while capping losses and earning yield, the asset manager&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126493"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126493"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126493\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126493"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}