Calamos Investments has unveiled the launch of the world’s first 100% downside-protected Bitcoin ETF, named CBOJ.
This financial product, scheduled to be listed on the CBOE on January 22, 2025, is designed to offer investors exposure to Bitcoin while mitigating the asset’s notorious volatility. It utilizes a combination of Treasuries and options tied to the CBOE Bitcoin US ETF Index.
Calamos claimed the ETF would provide regulated Bitcoin access with built-in risk protection, resetting annually to refresh both its upside cap and downside protection over the following 12-month period.
The ETF has a 0.69% annual expense ratio and offers full downside protection if held throughout the outcome period. It targets investors who have hesitated to enter Bitcoin markets due to its price fluctuations, providing a secure and regulated entry point into the asset class.
CEO John Koudounis expressed his excitement, highlighting that the launch is in line with the firm’s history of innovative risk management solutions. Notably, the firm was crowned the “Newcomer ETF Firm of the Year” award in June 2024.
The Head of ETFs at the firm, Matt Kaufman, added that CBOJ caters to institutional, advisory, and individual investors seeking Bitcoin’s growth potential without the risks associated with its high volatility.
“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 this fast-growing and high performing asset,” Kaufman noted.
CBOJ builds on the success of Calamos’ Structured Protection ETF series and is part of the firm’s broader push to offer innovative investment solutions. Alongside CBOJ, Calamos has introduced the S&P 500 Structured Alt Protection ETF. This product is designed to deliver positive price returns on the S&P 500® up to a defined cap while offering 100% downside protection over a one-year period.
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