Calamos launches Bitcoin ETFs with capped returns and protection
Calamos Investments has introduced a new suite of Bitcoin (CRYPTO:BTC) exchange-traded funds (ETFs) designed to provide investors with regulated exposure to Bitcoin while managing volatility risks.
The first ETF, named CBOJ, launched on January 20, 2025, offering 100% downside protection and a capped upside return of 10% to 11.5% over a one-year period.
Two additional funds, CBXJ and CBTJ, are set to launch on February 4, providing 90% and 80% downside protection, respectively.
These ETFs will utilise a combination of U.S. Treasurys and options on Bitcoin index derivatives to create a structured investment framework.
Matt Kaufman, head of ETFs at Calamos, emphasised the significance of this timing, noting that Bitcoin “might be a protection against inflation.”
Investors in CBOJ can expect an upside return of 10-11.5%, with full protection against price declines for one year.
The CBXJ and CBTJ funds will offer higher potential upside caps of 28%-31% and 50%-55%, respectively, while providing lower levels of downside protection.
“We’re expecting a pro-crypto economy over the next several years here,” stated Kaufman, highlighting the unique nature of these ETFs.
The launch coincides with a growing trend in crypto-related ETF filings as firms seek to capitalise on evolving regulatory landscapes.
Calamos aims to deliver risk-managed Bitcoin exposure through a transparent and tax-efficient ETF structure without counterpart credit risk.
The ETFs will reset annually, allowing investors to access new upside caps with refreshed protection against negative returns.
This innovative approach positions Calamos at the forefront of regulated Bitcoin investment options.
“Bitcoin’s acceptance as an investible asset is growing, yet concerns about its volatility remain,” Kaufman remarked.
The protective nature of these ETFs may appeal to both institutional and retail investors looking for safer entry points into the cryptocurrency market.
At the time of reporting, the Bitcoin (BTC) price was $103,651.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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