First Trust launches first Bitcoin Strategy ETFs

First Trust Advisors has unveiled two new Bitcoin strategy exchange-traded funds, adding to a suite of products that currently hold more than $28 billion in net assets.

In an announcement on April 4, First Trust said it launched the two Bitcoin (BTC) strategy ETFs this week. 

Specifically, the bitcoin exchange-traded funds are part of the the Floor15 ETF Series of Target Outcome ETFs, with both the FT Vest Bitcoin Strategy Floor15 ETF – April and the FT Vest Bitcoin Strategy & Target Income ETF listed on the NYSE Arca under tickers BFAP and DFII respectively.

“The FT Vest Bitcoin Strategy Floor15 ETF – April represents an innovative step forward in risk-managed cryptocurrency investing. By structuring investments with a defined floor and upside cap, we provide investors with a more controlled way to engage with bitcoin while mitigating downside exposure. This strategy reflects Vest’s commitment to outcome-focused solutions that seek to deliver more certainty and clarity to portfolios,” said Jeff Chang, president of Vest.

Ryan Issakainen, senior vice president and ETF strategist at First Trust, said the launch follows years of demand for bitcoin-linked ETFs. BFAP will allow those seeking to participate in the crypto space a chance to tap into BTC’s upside potential with clarity on downside risk.

As well as BFAP, First Trust believes DFII will gain traction for its potential. The fund, as Issakainen noted in a statement, will allow investors to explore opportunities around Bitcoin’s high volatility. Investors can look to generate income from this by selling call options.

The asset manager offers DFII as an actively managed fund, with 80% of net assets invested in bitcoin and income-generating investments. First Trust’s Target Outcome ETFs have seen a 53% spike in net assets in the past year, with over $28 billion as of the end of February.