Calamos Investments has introduced a new way for risk-averse investors to dip their toes into the world of bitcoin with the launch of the Calamos Bitcoin Structured Alt Protection ETF (CBOJ). Marketed as “the world’s first downside protected bitcoin ETF,” this new offering aims to provide investors with 100% protection against downside risk, ultimately appealing to those who are wary of the cryptocurrency’s notorious volatility.
In a recent interview on CNBC’s “ETF Edge,” Matt Kaufman, the firm’s ETF head, highlighted the unique features of the CBOJ. “You can get in all day long. Get that 100% protection. And then at the end of the day, we’re going to strike the cap,” Kaufman explained. The goal is to shield investors from sudden price fluctuations in bitcoin, offering a more stable and predictable investment experience.
The launch of the Calamos Bitcoin Structured Alt Protection ETF comes at a time when bitcoin is experiencing a positive trend, with the cryptocurrency seeing a 10% increase in value in recent weeks. According to a press release from Calamos, the fund aims to provide investors with a controlled environment to access bitcoin, addressing concerns about the asset’s high volatility.
“Many investors have been hesitant to invest in bitcoin due to its epic volatility,” Kaufman stated in the release. “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.”
In addition to the CBOJ, Calamos has plans to launch two more bitcoin-focused ETFs, including the Calamos Bitcoin 90 Series Structured Alt Protection ETF (CBXJ) and the Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ) on February 4th.
Despite its foray into cryptocurrency funds, Kaufman made it clear that Calamos is not interested in jumping on the meme coin bandwagon. “You’re not going to see meme coin ETFs from Calamos. But the ability to access bitcoin in a way that meets your risk tolerance, that’s what we’re about,” Kaufman emphasized.
Overall, the introduction of the Calamos Bitcoin Structured Alt Protection ETF represents a significant step towards making bitcoin investing more accessible and less intimidating for a wider range of investors. With its innovative approach to risk management, Calamos is paving the way for a more secure and stable investment experience in the world of cryptocurrency.
