PANews reported on December 2 that according to the Financial Times, 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' 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 buffer ETFs that protect 30% losses and three-month managed floor ETFs. Grayscale plans to launch an ETF that covers the sale of call options on the Bitcoin spot ETF, which sacrifices some of the price increase potential but provides stable premium income.
Currently, challenges facing these ETFs include option position limits. The Chicago Board Options Exchange is about to launch Bitcoin index options with higher position limits, which may provide greater capacity for product structure. If approved, these ETFs will be listed as early as February next year.
