Calamos is about to launch the first-ever 100% downside-protected Bitcoin (BTC/USD) exchange-traded fund (ETF). This exciting news came out in a press release on Monday.
So, what’s the deal with this ETF? It will use a mix of Treasury securities and options tied to the CBOE Bitcoin U.S. ETF Index. This index tracks the price returns from U.S.-listed spot Bitcoin ETFs, according to Calamos.
The ETF will reset every year. This means investors will have a new upside cap to protect against negative Bitcoin returns for the next 12 months. In simple terms, if the market dips, this fund aims to shield your investment. However, you might have to give up some potential gains in exchange for that protection.
Mark your calendars! The ETF is set to be listed on the CBOE on January 22 under the ticker CBOJ. Plus, you can hold CBOJ units indefinitely.
ETFs like this are becoming quite popular. CBOJ will be part of Calamos’ Structured Protection ETF series. This series also includes the Calamos S&P 500 Structured Alt Protection ETF—January CPSY and the Calamos Russell 2000 Structured Alt Protection ETF—January CPRY. Both of these offer 100% downside protection as well.
The timing of CBOJ’s launch is significant. Institutional investment in cryptocurrencies has hit record levels. In 2024, global digital asset investment products saw an incredible $44.2 billion in inflows. That’s nearly four times the previous record of $10.5 billion set in 2021. A big part of this growth comes from the introduction of U.S. spot-based ETFs.
Also noteworthy is the success of Bitcoin ETFs. BlackRock’s iShares Bitcoin Trust ETF (IBIT) became the most successful ETF launch ever. It amassed over $50 billion in assets under management within its first year.
As for Bitcoin’s current status, it’s trading at $101,696.58. That’s a 2.03% increase in the last 24 hours, according to data from Benzinga Pro.