Calamos Investments has rolled out a new line of Bitcoin exchange-traded funds (ETFs). These funds come with capped returns and downside protection. They offer a way for investors to gain regulated exposure to Bitcoin while managing volatility risks.

The first ETF, called CBOJ, launched on January 20. It provides 100% downside protection with an upside cap between 10% and 11.5% over a year. Two more funds, CBXJ and CBTJ, are set to launch on February 4. They will offer 90% and 80% downside protection, respectively.

Each fund uses a mix of U.S. Treasurys and options on Bitcoin index derivatives. This strategy creates a structured approach, giving investors regulated access to Bitcoin returns while incorporating risk management features.

In a recent CNBC interview, Matt Kaufman, head of ETFs at Calamos, mentioned that now is a great time to establish a U.S. Bitcoin reserve. He pointed out that Bitcoin could be a hedge against inflation.

For those investing in CBOJ, the expected upside return is between 10% and 11.5%, depending on market conditions. Plus, there’s 100% protection against price drops over a one-year period.

While CBXJ and CBTJ don’t offer the same level of protection, they come with higher potential upside caps. CBXJ allows for returns of 28% to 31%, and CBTJ offers caps of 50% to 55%.

This protective strategy aims to deliver “risk-managed Bitcoin exposure” through a liquid, transparent, and tax-efficient ETF structure. Importantly, there’s no counterpart credit risk involved.

Kaufman also highlighted a surge in crypto-related ETF filings. He emphasized that Calamos’ CBOJ is the first of its kind. He expressed optimism for a pro-crypto economy in the coming years, drawing parallels to historical reserves of strategic petroleum and gold.

On January 21, Osprey Funds and REX Shares filed for ETFs based on memecoins, including Official Trump (TRUMP), Dogecoin, and Bonk. This reflects a growing interest in diverse crypto investment options.

In related news, Joe Lubin, founder of Consensys, shared that Ether ETF issuers are hopeful for regulatory approval for funds offering staking. He mentioned that his team is actively discussing solutions with ETF providers to tackle the complexities of staking and slashing.

The U.S. Securities and Exchange Commission approved spot Ether ETFs in 2024, leading to the launch of nine products in July. However, the regulatory body has yet to approve a staked Ether ETF.