The US Securities and Exchange Commission (SEC) has received the first-ever Bitcoin ETF filing that offers 100% downside protection. Calamos Investments, a diversified global investment firm, submitted the new Bitcoin product to the SEC earlier today.
Calamos aims to expand its buffer Exchange-Traded Fund (ETF) suite with the new product.
Key Facts about the Impact of the Downside Bitcoin ETF
ETFStore President Nate Geraci commented that the Calamos Bitcoin Structured Alt Protection ETF, CBOJ, will track BTC’s gains for a predetermined upside. Additional key details will be announced alongside its January 22, 2025 launch date.
Consequently, investors will be protected against Bitcoin’s losses if they hold the ETF through its entire outcome period. This period begins after the market closes on January 22 and extends to January 31, 2026.
CBOJ builds upon the success of the Calamos Structured Protection ETF series, launched in 2024.
CBOJ allows investors to select from various indices and outcome periods that align with their investment objectives and risk-tolerance profiles. Eli Pars will manage CBOJ, charging investors a 0.69% fee.
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The Bitcoin ETF fund will utilize a combination of Treasuries and options on the CBOE Bitcoin US ETF Index. CBOJ gives investors a regulated way to access Bitcoin within a risk-controlled framework.
It is important to note that CBOJ will reset annually. As a result, investors will receive a new upside cap with refreshed protection against negative Bitcoin returns over 12 months.
Also, investors are permitted to keep their COJ shares indefinitely.
Current Bitcoin ETF Market Outlook
Meanwhile, the spot Bitcoin ETF market has seen substantial inflows after days of tempered outlook. Farside Investors data shows Bitcoin ETFs saw inflows reaching $908.1 million on January 3, 2025.
Fidelity’s spot Bitcoin ETF, FBTC, recorded the highest inflows of $357 million. BlackRock’s IBIT came second with $253.1 million, followed by Ark Invest’s ARKB with $222.6 million.
Other funds from Bitwise, Grayscale, and VanEck also reported gains, demonstrating the sector’s overall resurgence. This recovery followed a $242 million outflow recorded the previous day.
Together, the 11 spot Bitcoin ETFs launched in January 2024 have amassed over $115 billion in Bitcoin.
Expectations for Other Crypto ETF Applications
The launch of the spot Bitcoin and Ethereum ETFs has opened doors for other crypto ETF products. With a pro-crypto administration coming in the US this January, the crypto ETF market is set for major changes in 2025.
Experts anticipate groundbreaking product offerings and developments in operational mechanisms. They expect new crypto ETFs to launch next year as more people feel confident about the market’s regulatory maturity.
Bitwise Asset Management submitted an official SEC filing for their 10Crypto Index ETF in November. The ETF is designed to track the performance of 10 crypto mainstays like Bitcoin and Ethereum, XRP, and Solana.
The crypto ETF market could become more versatile with a Solana ETF. The SEC has halted new filings for Solana ETFs until a more crypto-friendly government emerges.
A friendly crypto regulatory environment might pave the road for the approval of new products.
