Grayscale and four other asset management companies have applied to US regulators for a "risk-averse" BTCETF

Four asset management companies have submitted applications to US regulatory agencies to create ETFs for investing in BTC, but using derivatives to minimize or completely prevent potential losses. Todd Rosenbluth, Director of Research at consulting firm TMX VettaFi, said, ‘Given the rapid pump of BTC this year, many investors may regret missing out on the opportunity because they are concerned about the volatility of Cryptocurrency. These upcoming downside protection ETFs will allow more people to add BTC exposure to their portfolios in a risk-conscious manner.’ Specifically, Calamos Investments has applied for four actively managed exchange-traded funds (ETFs). First Trust Portfolios has applied for a 15% on-exchange ETF and a buffer ETF, aiming to protect against any losses in the first 30%. Innovator ETFs is applying for a 10% buffer product that will be operational within three months. On the other hand, it has also applied for a 20% three-month managed on-exchange ETF and set a “participation rate”. In addition, Grayscale Investments also plans to launch a covered bullish BTC ETF, which will sell bullish options of Spot BTC ETF. If BTC pumps, this will reduce potential price gains but provide regular premium income. (FT)