On January 22, 2025, Calamos Investments plans to debut a Bitcoin ETF called CBOJ, which offers full protection from downside risks. This fund will be available for trading on the Chicago Board Options Exchange. Its purpose is to make Bitcoin investment less risky and more attractive to conservative investors by reducing volatility.
Bitcoin, famous for its significant price fluctuations, has typically been a turn-off for cautious investors. However, Calamos aims to shift this perspective by introducing a distinctive investment approach. This strategy combines U.S. Treasury bonds and options tied to the Cboe Bitcoin U.S. ETF Index. The fund guarantees no losses, providing protection even during Bitcoin price drops, while still offering growth opportunities.
Numerous investors have shied away from investing in Bitcoin because of its significant price fluctuations. However, Calamos aims to address the needs of advisors, institutions, and investors by offering solutions that harness Bitcoin’s growth opportunities while minimizing its historically high volatility and losses.” – Matt Kaufman, Head of ETFs at Calamos.
CBOJ ETF’s Annual Reset Mechanism — Full Protection Against Losses
The CBOJ ETF features an annual reset option that sets a new limit for possible profits each year, while maintaining complete safeguards against losses. This setup mirrors Calamos’ Structured Protection ETF series, introduced in 2024, which centered on stock indices such as the S&P 500 and Nasdaq-100.
Source: Calamos Investments
Products designed for specific, desired results, like buffer funds, have gained more attention, particularly following the 2022 stock and bond market drop. The CBOJ now applies this approach to Bitcoin, combining conventional risk management techniques with the potential for growth in cryptocurrency.
In January 2024, the introduction of Bitcoin ETFs signified a groundbreaking moment in the cryptocurrency sector, propelling Bitcoin’s price to reach new heights surpassing $108,000. Notably, the iShares Bitcoin Trust ETF (IBIT) stood out, accumulating an impressive $50 billion in assets.
Structured Funds Bridges the Bitcoin Gap
Although it has had some victories, Kaufman pointed out that many financial advisors are still reluctant towards Bitcoin because of its past price fluctuations. He proposes that innovative funds such as the CBOJ could help alleviate this hesitation by enabling investors to mix direct Bitcoin ETFs with risk-mitigating tactics.
As a crypto investor, I’ve noticed that influential players such as Innovator and First Trust are also venturing into strategies similar to mine. Pioneers like Grayscale and Roundhill have submitted applications for Bitcoin-based income-generating funds, such as covered call ETFs, broadening the market’s horizon even further.
The Calamos fund is structured for a 12-month duration, starting from January 22, 2025, and ending on January 31, 2026. Its allure comes from its capability to shield against losses while providing an opportunity to benefit from potential Bitcoin price increases, thanks to the upside limit set by option pricing. For those interested in exploring cryptocurrency without the volatility, CBOJ could be an ideal choice.
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2025-01-06 22:52