Innovator Capital Management today announced the launch of its Uncapped Bitcoin 20 Floor ETF – Quarterly. It’s the first bitcoin ETF that combines risk management with unlimited growth potential.
The ETF aims to give investors exposure to bitcoin’s upside volatility. This allows them to participate in up to 80% of bitcoin’s positive price movements over a quarterly period. Crucially, it protects against losses, with a 20% floor that limits exposure to any downturn in bitcoin’s price. This floor ensures that investors will not lose more than 20% of any price drop. That makes it an attractive choice for those wary of the cryptocurrency’s notorious volatility.
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The fund achieves this strategy without directly investing in bitcoin. Instead, it uses a defined outcome strategy to mimic bitcoin’s price movements. That provides a more controlled investment experience. This makes it an innovative solution for advisors and investors looking for risk-managed crypto exposure.
Response to Growing Demand
QBF comes with an expense ratio of 0.79%. This is relatively competitive compared to similar funds in the market.
Graham Day, CIO at Innovator Capital Management, emphasized that the ETF’s strategy is a response to the growing demand for crypto exposure amid a crypto-friendly regulatory environment. However, investors are still wary of the asset class’s inherent volatility.
“Many investors are intrigued by crypto’s outsized gains but are wary of losing everything,” he said. “QBF allows clients to capture Bitcoin’s upside potential while capping downside risks—without limiting any of the potential for returns.”
“Investor interest in bitcoin and crypto ETFs continues to grow and support demand for new product launches,” noted Roxanna Islam, head of sector & industry research at VettaFi. “QBF is an example of the type of innovation we expect to see as the crypto ETF ecosystem evolves.”
For more information, please visit VettaFi.com | ETF Trends.
