- Calamos Bitcoin ETF guarantees 100% downside protection with annual gain cap resets.
- CBOJ ETF blends U.S. Treasuries and Bitcoin options for risk-managed exposure.
- Bitcoin ETFs surged in 2024; CBOJ aims to attract cautious investors in 2025.
Calamos Investments has lined up its revolutionary Bitcoin exchange-traded fund (ETF) under the name CBOJ to launch on January 22, 2025, through the Chicago Board Options Exchange. The ETF aims to solve Bitcoin’s high volatility while guaranteeing downside protection, making it suitable for risk-averse investors.
The CBOJ ETF consists of U.S. Treasury bonds and options related to the CBOE Bitcoin US ETF Index. This structure offers a regulated way to gain exposure to Bitcoin while protecting investors from the risks of investments in the possibility of low Bitcoin prices.
Approach to Bitcoin investment
The CBOJ ETF uses a structured protection approach based on the Calamos series and is exposed to stock indices, including the S&P 500 and the Nasdaq-100. New products relying on blockchain technology allow investors to benefit from Bitcoin’s potential gains with less exposure to previous fluctuations.
The ETF resets its downside protection annually. Each year, investors receive a fresh cap on potential gains while maintaining complete protection against losses. For the initial holding period—January 22, 2025, to January 31, 2026—investors will benefit from 100% downside protection. The upside cap for this period will be determined closer to the launch date based on options pricing.
According to Matt Kaufman, Calamos’ Head of ETFs, this approach provides financial advisors and institutional investors with a risk-managed framework to explore Bitcoin’s growth potential.
Expanding Bitcoin ETF Strategies
Calamos’ initiative is part of a broader industry trend to integrate Bitcoin exposure into structured investment products. Other asset managers, such as Innovator and First Trust, have also filed to launch funds offering similar risk-mitigation strategies. Firms like Grayscale and Roundhill are exploring income-generating Bitcoin ETFs through covered call strategies.
The ETF market for Bitcoin gained significant traction in 2024 when spot Bitcoin ETFs were approved, attracting billions in assets and driving Bitcoin to record highs above $100,000. Despite this success, financial advisors remain cautious due to the cryptocurrency’s unpredictable price swings. Structured ETFs like CBOJ aim to address these concerns, making Bitcoin more accessible to a broader investor base.
The CBOJ ETF will carry an annual fee of 0.69% and trade under the symbol CBOJ. Calamos also plans to introduce “floor” funds with 80% and 90% protection, offering investors flexibility to balance risk and potential returns.
Market Outlook and Challenges
The introduction of Bitcoin options tied to ETFs, which began in late 2024, has expanded opportunities for structured products. However, liquidity challenges in the options market remain a potential hurdle. Calamos, however, expressed confidence in the scalability of its offering, ensuring that liquidity concerns will not hinder fund performance.
