Grayscale and three other asset management companies have applied to the U.S. regulatory authorities for a "risk-avoidance" Bitcoin ETF

Four asset management companies have submitted applications to U.S. regulators to create Bitcoin ETFs, but use derivatives to minimize or completely prevent potential losses. Todd Rosenbluth, research director of consulting firm TMX VettaFi, said: "Given the rapid rise of Bitcoin this year, many investors may regret missing the opportunity because they are worried about the volatility of cryptocurrencies. These upcoming downside protection ETFs will allow more people to add Bitcoin exposure to their portfolios in a risk-conscious manner."

Specifically, Calamos Investments has applied for four managed floor ETFs. First Trust Portfolios has applied for a 15% floor ETF and a buffer ETF designed to protect against any loss of up to 30%. Innovator ETFs is applying for a 10% buffer product that will operate within three months. On the other hand, it also applied for a 20% three-month managed floor ETF and set a "participation rate".

In addition, Grayscale Investments plans to launch a covered call Bitcoin ETF which will sell call options on spot bitcoin ETFs. If bitcoin rises, this would reduce potential price increase gains but provide regular premium income.