For crypto-curious investors who've been sitting on the sidelines, wary of Bitcoin's infamous volatility, there are two new funds on the block. On Friday, First Trust Advisors, in partnership with Vest Financial, officially launched the FT Vest Bitcoin Strategy Floor15 ETF (NYSE:BFAP) and the FT Vest Bitcoin Strategy & Target Income ETF (NYSE:DFII)—the latest additions to their growing suite of Target Outcome ETFs.

Offering a slice of Bitcoin's potential upside while placing a clear guardrail on the downside makes BFAP stand out in a sea of Bitcoin-linked ETFs.

According to Ryan Issakainen, Senior VP and ETF Strategist at First Trust, "Over the past few years, investors have shown a remarkably strong appetite for Bitcoin-linked ETFs, but the potential for sharp drawdowns has kept many on the sidelines. We believe BFAP will be a useful tool for those seeking to participate in a meaningful portion of Bitcoin's potential upside while also addressing downside risk."

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BFAP tracks the Cboe Bitcoin U.S. ETF Index and uses a smart mix of options—including FLEX Options and over-the-counter derivatives—to mimic Bitcoin's performance. But instead of letting investors ride the crypto rollercoaster unprotected, BFAP applies a floor and a cap.

The cap, as of April 4, sits at 34.51% (before fees and expenses).

The floor offers a maximum loss limit of 15% (before fees and expenses) over an approximate one-year period.

That means you can tap into bitcoin's potential growth without free-falling if the market takes a hit.

BFAP doesn't directly invest in bitcoin, though. Instead, it uses "reference instruments" tied to the asset's price movements, keeping it within regulatory guardrails while still giving investors a way to play the crypto game.

"A More Controlled Way To Engage With Bitcoin"

That's how Jeff Chang, president of Vest, describes it. "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."

The ETF's net expense ratio is 90 basis points, putting it within the expected range for a niche, strategy-heavy product.

And BFAP isn't alone. DFII’s strategy is also aimed at income-seekers. DFII doesn't just give partial exposure to Bitcoin's returns; it seeks to generate a targeted annual income of 15% by selling options and capturing volatility-driven premiums. It's another attempt by Vest to bring outcome-based predictability to the wild world of crypto investing.

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