First Trust Launches Two Bitcoin Strategy ETFs

First Trust Advisors has introduced two new Bitcoin strategy ETFs aimed at traditional investors seeking exposure to Bitcoin while managing volatility and earning income. The funds are part of a growing trend to make crypto-linked products more accessible through structured strategies, coinTelegraph reported.

The FT Vest Bitcoin Strategy Floor15 ETF (BFAP) offers exposure to Bitcoin’s upside but limits drawdown risk to around 15 per cent. “The sharp volatility of Bitcoin has kept many investors away, despite strong demand for Bitcoin-linked ETFs,” said First Trust ETF strategist Ryan Issakainen.

The second product, FT Vest Bitcoin Strategy & Target Income ETF (DFII), is actively managed and aims to generate income by selling call options on Bitcoin. The goal is to deliver returns exceeding short-term US Treasury yields by at least 15 per cent.

Both ETFs use financial derivatives to manage risk and returns. Their launch follows Grayscale’s release of two similar Bitcoin strategy ETFs on April 2. As of April 4, spot Bitcoin ETFs manage about $93 billion in assets, despite nearly $100 million in outflows on April 3 amid market jitters triggered by US tariff news.

Crenshaw Says SEC Shows a Distorted Picture of the USD Stablecoin Market

US SEC Commissioner Caroline Crenshaw has criticized the agency’s latest stablecoin guidelines, accusing it of downplaying risks and misrepresenting the USD-stablecoin market. In an April 4 statement, Crenshaw said the SEC’s guidance contains “legal and factual errors” that understate the risks of stablecoins, which are now considered “non-securities” if they meet certain conditions and are exempt from transaction reporting, according to CoinTelegraph.

Crenshaw, known for opposing spot Bitcoin ETFs, argued that the SEC’s portrayal of stablecoin accessibility and issuer-backed redeemability was misleading. She noted that over 90 per cent of stablecoins are accessed via intermediaries like trading platforms and said reserve backing alone does not guarantee an issuer’s financial health.

Despite her concerns, the crypto industry welcomed the SEC’s move. Token Metrics founder Ian Ballina called it a step in the right direction, while Midnight Network’s Ian Kane said it “feels like progress.” The update follows reports that Tether is engaging a Big Four firm to audit its reserves. Tether CEO Paolo Ardoino claimed the process may be smoother under pro-crypto US President Donald Trump.

Brazil Court Approves Crypto Seizure to Settle Debt, Says Report

Brazil’s Superior Court of Justice has authorized judges to seize cryptocurrencies from debtors to repay creditors, recognizing crypto as a valid store of value and payment method. The Third Panel of the court unanimously agreed that crypto assets, though not legal tender, can be treated similarly to traditional financial assets in debt recovery cases. Judges can now send notices to crypto exchanges to access and freeze debtor accounts, just as they do with bank accounts.

The ruling comes amid a surge in crypto adoption in Brazil, which ranks second in Latin America for crypto value received, according to Chainalysis. While the country still lacks a comprehensive digital asset framework, regulatory developments are underway. Binance was recently approved to operate in Brazil following the acquisition of a local investment firm, as reported by coinTelegraph.

But not all ideas have benefited the sector. For example, the central bank of Brazil earlier proposed prohibiting stablecoin transactions through self-custody wallets, which alarmed cryptocurrency users who depend on dollar-pegged tokens as a hedge against inflation.