Calamos to launch Bitcoin ETF with 100% downside protection

Calamos Investments offers a Bitcoin exchange-traded fund with 100% downside protection.

According to the statement made by the company, the ETF called CBOJ, which will be launched on the Chicago Board Options Exchange on January 22, aims to eliminate the volatility of Bitcoin while offering growth potential.

Bitcoin (BTC) has often deterred risk-averse investors due to its significant price fluctuations. The CBOJ ETF aims to change this by ensuring that investors do not lose money even if the value of Bitcoin drops.

The fund provides this protection by combining U.S. Treasury securities with options tied to the CBOE Bitcoin U.S. ETF Index. This structure provides an orderly and transparent way to gain exposure to Bitcoin while minimizing risk.

CBOJ is based on Calamos’ Structured Protection ETF series, which launches in 2024 and provides similar protection for stock indexes such as the S&P 500 and Nasdaq-100.

Annual protection reset

Unlike traditional ETFs, CBOJ resets its downside protection annually. Investors receive a new cap on potential gains each year while providing full protection against losses for the next 12 months.

“Many investors have been hesitant to invest due to Bitcoin’s extraordinary volatility,” said Calamos ETF President Matt Kaufman. “Calamos aims to meet advisor, institutional and investor demand for solutions that capture Bitcoin’s growth potential while reducing Bitcoin’s historically high volatility and downsides. [the asset].”

A report published in December 2024 claimed that many major exchanges, such as Calamos, would turn to new derivatives-based Bitcoin ETFs to help cautious investors navigate the cryptocurrency’s notorious price swings.

ETFs are investment funds that trade like stocks on stock exchanges and allow investors to pool their money into a fund that holds a variety of assets.

Essentially, CBOJ offers investors a way to gain access to Bitcoin without directly owning it, while also reducing risks thanks to its protective structure.