- Calamos is launching a Bitcoin ETF with 100% downside protection named CBOJ in January.
- The ETF combines Treasury bonds and Bitcoin choices to mitigate funding dangers.
- CBOJ gives annual protection resets and caps potential good points for danger administration.
Calamos Investments is about to launch a groundbreaking Bitcoin exchange-traded fund (ETF) providing 100% downside protection.
Scheduled to debut on the Chicago Board Options Exchange (CBOE) on January 22, the brand new ETF, named CBOJ, is designed to tackle Bitcoin’s volatility whereas offering progress alternatives, in accordance to a company announcement.
Calamos’ Structured Protection ETF sequence
CBOJ builds upon the success of Calamos’ Structured Protection ETF sequence, launched in 2024. This sequence supplied comparable downside protection mechanisms for inventory indices just like the S&P 500 and Nasdaq-100.
By extending these rules to Bitcoin, Calamos seeks to meet the calls for of advisors, establishments, and traders searching for a manner to seize Bitcoin’s progress potential whereas mitigating its traditionally excessive volatility.
Bitcoin has traditionally been a extremely risky asset, usually deterring risk-averse traders. The CBOJ ETF goals to overcome this problem by making certain that traders don’t lose cash, even when Bitcoin’s worth declines.
This progressive fund achieves downside protection by integrating US Treasury bonds with choices tied to the CBOE Bitcoin US ETF Index. The mixture gives a regulated and clear avenue for gaining Bitcoin publicity whereas minimizing related dangers.
CBOJ ETF’s annual protection reset
One of the distinctive options of the CBOJ ETF is its annual reset of downside protection. Each yr, traders profit from a new cap on potential good points whereas sustaining full protection towards losses for the following 12 months.
This construction ensures ongoing danger mitigation and aligns with the dynamic nature of the Bitcoin market.
“Many investors have been hesitant to invest in Bitcoin due to its epic volatility,” mentioned Matt Kaufman, Head of ETFs at Calamos. “Calamos seeks to meet advisor, institutional, and investor demands for solutions that capture Bitcoin’s growth potential while mitigating the historically high volatility and drawdowns of the asset.”
ETFs are funding funds that commerce like shares on exchanges, permitting traders to pool their cash into a fund holding varied belongings. With CBOJ, traders achieve publicity to Bitcoin with out the necessity to personal the cryptocurrency immediately. This protecting construction makes the ETF particularly interesting to cautious traders trying to navigate the crypto market’s infamous worth swings.
As derivatives-based Bitcoin ETFs achieve traction, trade stories counsel that extra companies might observe Calamos’ lead in introducing comparable options for risk-averse traders.
