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Bitcoin ETFs for Risk-Averse Investors

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  • (1:00) - Innovator ETFs Trust: Uncapped Bitcoin 20 Floor ETF: QBF
  • (10:30) - How Did Option Contracts Impact Spot Bitcoin ETFs?
  • (16:15) - Should You Own Bitcoin In Your Portfolio?
  • (26:20) - Episode Roundup: QBF, CBOJ, CBXJ, CBTJ
  • Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Graham Day, Chief Investment Officer at Innovator Capital Management, about Bitcoin ETFs suitable for risk-averse investors.

Last week, Innovator, which pioneered Defined Outcome ETFs—also known as buffer ETFs—launched the Uncapped Bitcoin 20 Floor ETF® - Quarterly (QBF - Free Report) , the first ETF offering uncapped exposure to Bitcoin’s upside potential while simultaneously capping downside losses.

Investors can gain up to 80% of Bitcoin's rise each quarter while being protected against losses greater than 20%.

Spot Bitcoin ETFs recently celebrated their first anniversary, shattering all records thanks to immense pent-up demand after a decade-long wait. The iShares Bitcoin Trust (IBIT - Free Report) alone has amassed over $57 billion in assets, making it the most successful ETF launch in history.

With a crypto-friendly administration, the market could witness further innovation and growth, as President Trump aims to establish the U.S. as the "crypto capital of the planet."

The recent listing of options contracts on spot Bitcoin ETFs has led to a surge in filings for derivative-backed ETFs, utilizing both buffered and covered call strategies.

Many investors are drawn to Bitcoin’s impressive performance but remain wary of its extreme volatility. For those seeking downside protection, loss-protection ETFs like QBF could be a compelling option.

Another provider, Calamos, has launched a suite of Bitcoin buffer ETFs: Bitcoin Structured Alt Protection ETF – January (CBOJ - Free Report) , Bitcoin 90 Series Structured Alt Protection ETF – January (CBXJ - Free Report) and Bitcoin 80 Series Structured Alt Protection ETF – January (CBTJ - Free Report)

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.

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