First Trust Advisors, a leading asset manager with more than $28 billion in net assets, has expanded its ETF lineup with the launch of two new Bitcoin Strategy ETFs, designed to give investors defined exposure to BTC while managing downside risk.
Announced on April 4, the new funds—part of the Floor15 ETF Series of Target Outcome ETFs—are now listed on NYSE Arca under the tickers:
- BFAP: FT Vest Bitcoin Strategy Floor15 ETF – April
- DFII: FT Vest Bitcoin Strategy & Target Income ETF
Targeted Exposure to Bitcoin with Defined Outcomes
The launch of these ETFs is aimed at investors seeking more structured access to Bitcoin amid its continued market volatility. According to Jeff Chang, President of Vest (a First Trust partner):
“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.”
Chang emphasized that the strategy aligns with Vest’s broader commitment to outcome-focused solutions that offer clarity in uncertain market environments.
Differentiated Strategies for Diverse Investors
While BFAP focuses on risk-managed participation with clear limits on both gains and losses, the DFII ETF presents a more income-oriented approach. As Ryan Issakainen, Senior Vice President and ETF Strategist at First Trust, noted:
“DFII offers investors the opportunity to capitalize on Bitcoin’s high volatility by generating income through selling call options.”
The DFII fund is actively managed, allocating approximately 80% of its net assets to Bitcoin and income-generating investments such as call options. This dual exposure is designed to capture BTC’s upside while generating yield in varying market conditions.
Responding to Growing Demand
Issakainen highlighted that the launch comes after years of increasing demand for Bitcoin-linked ETFs. As traditional and institutional investors look for more refined entry points into crypto, structured ETFs like BFAP and DFII provide a compelling option.
First Trust’s Target Outcome ETF suite has seen notable growth, with net assets up 53% over the past year—a reflection of growing interest in strategies that provide clarity in a complex market landscape.
Final Thoughts
The launch of BFAP and DFII underscores First Trust’s commitment to innovation in the ETF space, particularly as investor interest in crypto-backed financial products continues to rise. By offering defined outcomes and income potential, these ETFs aim to bridge the gap between traditional investing principles and the dynamic world of digital assets.
