First Trust, a prominent financial services firm, has officially filed for the creation of the First Trust Bitcoin Buffer ETF with the U.S. Securities and Exchange Commission (SEC). Unlike traditional spot Bitcoin ETFs, this innovative product utilizes options to safeguard investors from potential market declines while limiting potential gains. Buffer ETFs, also known as “defined-outcome ETFs,” have gained traction recently, with BlackRock unveiling its versions earlier this year. It’s crucial to note that buffer ETFs do not guarantee full protection, and investors should carefully assess their suitability. Expect more creative Bitcoin exposure strategies in this expanding market.