The post First Trust Files Bitcoin Buffer ETF: What It Means for Investors? appeared first on Coinpedia Fintech News
Amidst a burgeoning trend of major players filing for Bitcoin exchange-traded funds, esteemed investment management company First Trust Portfolios, L.P. has submitted its Form N1-A filing to the United States Securities and Exchange Commission. This submission reveals plans for an innovative investment tool—the Bitcoin Buffer ETF.
The Bitcoin Buffer ETF is designed to leverage positive price returns from the Grayscale Bitcoin Trust (pending approval) or a similar ETF mirroring Bitcoin. What sets this fund apart is its unique buffer against the initial 30% of potential losses in the underlying ETF over specified periods known as “Target Outcome Periods.”
Unique Features
The buffer acts as a safeguard, offering investors protection against the first 30% downturn in the Underlying ETP’s value. However, it’s important to note that the fund doesn’t aim to provide
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