Calamos Investments has launched the Calamos Bitcoin Structured Alt Protection ETF (CBOJ), marking a significant milestone as the world's first downside protected bitcoin ETF. This innovative financial product aims to provide investors with access to bitcoin within a risk-controlled environment. It addresses the growing demand from advisors, institutions, and investors seeking to capture bitcoin's growth potential while mitigating its notorious volatility.
The launch of CBOJ on Wednesday was the first step in Calamos' broader strategy. The firm plans to introduce additional funds, including the Calamos Bitcoin 90 Series Structured Alt Protection ETF (CBXJ) and the Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ), on February 4. These ETFs are designed to offer varying levels of structured protection, tailored to different investor needs.
The primary goal of the CBOJ fund is to mitigate the historically high volatility and drawdowns associated with bitcoin investments. Calamos has equipped this fund with a cap on price movement, ensuring 100% downside protection. This feature is particularly appealing to investors who have been hesitant to enter the cryptocurrency market due to its unpredictable nature.
Matt Kaufman, head of ETFs at Calamos, emphasized that many investors have steered clear of bitcoin due to its volatility. He stated, "Bitcoin is a volatile asset … we don't want the price of bitcoin to move on you overnight." By offering a structured protection approach, Calamos aims to provide investors with an opportunity to participate in bitcoin's growth without undue risk.
Calamos' ETF does not plan to expand into meme coin offerings, focusing instead on delivering reliable and secure bitcoin investment options. Kaufman highlighted the firm's commitment by saying, "You're not going to see meme coin ETFs from Calamos. But the ability to access bitcoin in a way that meets your risk tolerance, that's what we're about."
As of late Thursday afternoon, bitcoin's value had risen by 10%, underscoring the potential growth for investors who can handle its volatility. The CBOJ fund's unique structure allows for daily investment while maintaining protection. Kaufman elaborated, "You can get in all day long. Get that 100% protection. And then at the end of the day, we're going to strike the cap."
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