First Trust Enters Bitcoin ETF Space
First Trust Advisors launched two Bitcoin strategy exchange-traded funds (ETFs) aimed at giving investors structured exposure to the performance of Bitcoin. The ETFs are targeted at investors seeking crypto exposure with built-in risk controls and income opportunities.
ETF Details: BFAP and DFII
The FT Vest Bitcoin Strategy Floor15 ETF (BFAP) targets Bitcoin’s performance through a capped gain, while limiting losses to approximately 15%, according to First Trust.
Concurrently, the FT Vest Bitcoin Strategy & Target Income ETF (DFII) seeks to offer modest exposure to Bitcoin and obtain a yield of more than short-term U.S. Treasurys by at least 15%. DFII utilizes the high volatility of Bitcoin to generate income through the writing of call options.
Bridging Traditional and Crypto Markets
Investors have been highly interested in bitcoin-linked ETFs, but volatility has held back many from jumping in,” said Ryan Issakainen, a strategist at First Trust who works on ETFs. The structured method of BFAP and DFII is designed to alleviate those concerns.
Increasing Market for Structured Bitcoin Funds
Structured Bitcoin funds are also gaining traction. As of April 4, total spot Bitcoin ETFs have around $93 billion in assets. Grayscale and Bitwise have also launched bespoke Bitcoin ETFs recently, with a high concentration on volatility management and income generation.
Market Volatility Persists
Despite the boom in new products, market volatility remains a concern. On April 3, spot Bitcoin ETFs experienced nearly $100 million in withdrawals after President Trump’s sweeping tariff announcement, reflecting market sensitivity.
