United

Bitcoin ETF

Bitcoin

Grayscale Bitcoin Trust

Financial services firm First Trust submitted the Bitcoin buffer filing ETF to the United States Securities and Exchange Commission on Dec. 14.&nbsp; 
The filing, Form N1, outlines the firm’s intention to introduce a new Bitcoin-linked product named the First Trust Bitcoin Buffer ETF. 
According to&nbsp;<a href="https://www.sec.gov/Archives/edgar/data/1329377/000144554623008359/etf1_485a.htm" target="_blank" rel="noreferrer noopener">the filing</a>, the newly proposed fund will mirror the positive price returns of the Grayscale Bitcoin Trust or another exchange-traded product (ETP), offering exposure to Bitcoin’s (<a href="https://crypto.news/price/bitcoin/" data-type="link" data-id="https://crypto.news/price/bitcoin/">BTC</a>) performance before factoring in fees and expenses. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 First Trust just filed for a <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#Bitcoin</a> Buffer ETF. These types of funds protect against a set % of downside loss with capped upside. Expect to see other entrants in the space with unique differentiated strategies offering Bitcoin exposure over coming weeks. h/t <a href="https://twitter.com/VildanaHajric?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@VildanaHajric</a> <a href="https://t.co/1qiWF53dM0" target="_blank">pic.twitter.com/1qiWF53dM0</a>— James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1735382834020311418?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">December 14, 2023</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
Differing from a spot Bitcoin ETF, which directly tracks Bitcoin’s performance, the buffer ETF will employ options to pursue a specific investment outcome. According to Bloomberg Intelligence analyst James Seyffart, the benefit is that this type of fund is said to shield investors from losses in the event of market downturns by imposing a buffer or limit on a stock’s growth within a defined period.&nbsp; 
Seyffart states that the community should expect other entrants with different strategies for Bitcoin exposure in the next couple of weeks. 
 You might also like: <a href="https://crypto.news/sec-is-taking-new-look-at-spot-bitcoin-etf-applications/"> SEC is taking ‘new look’ at spot Bitcoin ETF applications </a> 
This news came on the same day Valkyrie Funds, a spot Bitcoin ETF race player, submitted a <a href="https://crypto.news/valkyrie-files-new-s-1-adopts-cash-only-approach-for-spot-bitcoin-etf/">new S-1</a>. 
In alignment with <a href="https://crypto.news/bitwise-bitcoin-etf-listed-on-dtcc-along-with-fidelity-and-blackrock/">Bitwise</a> and <a href="https://crypto.news/sec-postpones-deadline-for-decision-on-invesco-galaxy-spot-ethereum-etf/">Invesco</a>, this move underscored a focus on cash-only creations and redemptions, with shared anticipation for transitioning to in-kind transactions where regulations allow. 
 Read more: <a href="https://crypto.news/valkyrie-files-new-s-1-adopts-cash-only-approach-for-spot-bitcoin-etf/"> Valkyrie files new S-1, adopts cash-only approach for spot Bitcoin ETF </a>

First Trust files for Bitcoin buffer ETF

crypto.news

Other articles published on Dec 15, 2023

P2E Trailblazer Tamadoge Unveils Groundbreaking NFT Breeding Feature After Introducing New Tamado...

Why is Ripple (XRP) Lagging Behind While Other Altcoins Surge?

First Trust Files for Bitcoin Buffer ETF with SEC!

Web3 Neobanks: The New Face of Finance and Banking?

South Korea’s central bank urges swift action on CBDC amid growing stablecoin popularity

Peter Brandt issues warning for Ethereum amid spike in gas fee

Join our free newsletter for daily crypto updates!