Calamos Investments launches Bitcoin exchange-traded fund with 100% downside protection.
Scheduled to debut on the Chicago Board Options Exchange on January 22, the ETF, called CBOJ, aims to address Bitcoin’s volatility while providing growth potential, according to a company release.
Bitcoin (BTC) has often deterred risk-averse investors due to its significant price fluctuations. The CBOJ ETF seeks to change that by ensuring that investors don’t lose money, even if the value of Bitcoin declines.
The fund achieves this protection by combining US Treasury bonds with options linked to the CBOE Bitcoin US ETF. This structure provides a regulated and transparent way to gain exposure to Bitcoin while minimizing risk.
CBOJ builds on Calamos’ Structured Protection ETF series, which launched in 2024 and provides protection similar to stock indexes such as the S&P 500 and Nasdaq-100.
Annual protection reset
Unlike traditional ETFs, the CBOJ resets its downside protection every year. Each year, investors receive a new cap on potential gains while retaining full loss protection for the next 12 months.
“Many investors are hesitant to invest in bitcoin due to its epic volatility,” said Matt Kaufman, head of ETFs at Calamos. “Calamos seeks to address requests from advisors, institutions and investors for solutions that capture Bitcoin’s growth potential while mitigating the (asset’s) historically high volatility and drawdowns.”
A December 2024 report claimed that several major exchanges, like Calamos, would turn to new derivatives-based Bitcoin ETFs to help cautious investors manage the crypto’s notorious price swings.
ETFs are investment funds that trade like stocks on a stock exchange, allowing investors to pool their money into a fund containing various assets.
Essentially, CBOJ offers investors a way to gain exposure to Bitcoin without directly owning it, while mitigating risk through its protection structure.
