First Trust Advisors has introduced two Bitcoin strategy exchange-traded funds (ETFs) aimed at offering structured exposure to Bitcoin performance while managing potential losses. The FT Vest Bitcoin Strategy Floor15 ETF (BFAP) caps upside performance while limiting drawdowns to about 15%. Ryan Issakainen, an ETF strategist at First Trust, emphasized that many investors have hesitated to participate in Bitcoin-linked ETFs due to volatility concerns. The second fund, the FT Vest Bitcoin Strategy & Target Income ETF (DFII), is an actively managed product that seeks to provide partial Bitcoin exposure and aims to offer yields exceeding those of short-dated US Treasurys by at least 15%. This fund takes advantage of Bitcoin’s price volatility by selling call options to generate income. The launching of these ETFs coincides with a growing trend of financial products that tailor exposure to Bitcoin’s performance. Recent data suggests that spot BTC ETFs currently manage around $93 billion in assets, despite recent outflows due to market volatility following tariff announcements by the US government.

Source 🔗