Calamos Investments, a global investment management firm, is launching a suite of protected Bitcoin exchange-traded funds (ETFs) offering investors exposure to Bitcoin while managing volatility risks.
The initial ETF, CBOJ, was launched on Jan. 20 and provides 100% downside protection with a capped upside of 10% to 11.5% over a one-year period. Two additional funds, CBXJ and CBTJ, which will provide 90% and 80% downside protection, respectively, are expected to launch on Feb. 4.
Each fund will utilize a combination of US Treasurys and options on Bitcoin (BTC) index derivatives to create a structured framework offering investors regulated access to BTC returns with built-in risk management.
In an interview with CNBC, Matt Kaufman, head of ETFs at Calamos, said the timing is ideal to establish a US Bitcoin reserve, noting that Bitcoin “might be a protection against inflation.”
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Protected Bitcoin ETFs
According to Kaufman, investors in Calamos’ CBOJ can expect an upside return of 10-11.5%, depending upon market conditions, with 100% protection against the asset price falling over a one-year outcome period.
The CBXJ and CBTJ offerings don’t provide the same 100% protection, but offer a significantly higher potential upside cap of 28%–31% for the CBXJ and 50%–55% for the CBTJ.
According to a news release, this protective approach to regulated Bitcoin ETF access aims to deliver “risk-managed Bitcoin exposure through the liquid, transparent and tax-efficient ETF structure with no counterpart credit risk.”
Related: Bitcoin holds above $106K as traders bite nails over the absence of Trump crypto executive order
Expected ETF filings for 2025
In the CNBC interview, Kaufman highlighted an ongoing “flurry of crypto-related ETF filings,” and added that Calamos’ protected Bitcoin ETF suite CBOJ is the first of its kind.
“We’re expecting a pro-crypto economy over the next several years here,” Kaufman said. “We saw a strategic petroleum reserve more than 50 years ago […] We have gold reserves. So if you’re going to build a Bitcoin reserve, we think now is a good time to do it.”
On Jan. 21, asset managers Osprey Funds and REX Shares filed ETFs for memecoins, including Official Trump (TRUMP), Dogecoin (DOGE) and Bonk (BONK), reflecting the growing demand for diverse crypto investment options.
Related: 80% of Bitcoin short-term holders back in profit as analyst says ‘FOMO in full swing’
Ethereum ETF issuers expect staking approval
According to Joe Lubin, founder of Consensys, Ether (ETH) ETF issuers expect that funds offering staking could “soon” be given the regulatory green light.
Lubin said that his team has been in discussions with ETF providers who are “working hard on creating the best solutions” for their customers to tackle the complexities surrounding “staking and slashing.”
The US Securities and Exchange Commission approved spot Ether ETFs in 2024, with nine products launched in July, but the regulatory entity has yet to approve a staked Ether ETF.
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