In January, Calamos will launch CBOJ, a 100% downside-protected Bitcoin ETF. The ETF mixes Bitcoin options and Treasury bonds to lessen risk.CBOJ caps gains and resets protection annually to mitigate risk. Calamos Investments will launch a groundbreaking Bitcoin ETF with 100% downside protection. A company announcement states that CBOJ, a new ETF, will debut on CBOE on January 22.CBOJ Bitcoin ETF aims to reduce Bitcoin volatility and boost growth.
Calamos Unveils CBOJ ETF
The success of Calamos’ Structured Protection ETF series, which was first offered in 2024, is being built upon by CBOJ. This series offered downside protection measures for stock indexes such as the Nasdaq-100 and S&P 500. By applying these ideas to Bitcoin, Calamos aims to satisfy the needs of investors, advisors, and institutions who want to harness the cryptocurrency’s growth potential while reducing its historically high volatility.
Due to its extreme volatility, Bitcoin has typically turned off risk-averse investors. By guaranteeing that investors won’t lose money even if Bitcoin’s value drops, the CBOJ ETF seeks to address this issue. This creative vehicle provides downside protection by combining US Treasury bonds with options linked to the CBOE Bitcoin US ETF Index. The combination provides a regulated and transparent avenue for gaining Bitcoin.
Bitcoin with Downside Protection
A unique characteristic of the CBOJ ETF is its annual downside protection reset. Investors receive a net gain cap each year and full loss protection for the next year. This structure mitigates risk and matches Bitcoin’s volatility. Many investors are wary of Bitcoin due to its extreme volatility. ETF head at Calamos. Advisors, institutions, and investors want answers from Calamo. Capture Bitcoin’s growth potential while reducing its volatility and drawdowns.
Bitcoin exposure without ownership. CBOJ Bitcoin ETF Due to its protective structure, the ETF attracts cautious investors who want to ride out Crypto market price volatility. The CBOJ Bitcoin ETF exposes investors to Bitcoin’s growth potential while addressing its volatility. Combining U.S. Treasury bonds and options tied to the CBOE Bitcoin Index guarantees downside protection, shielding investors from losses even if Bitcoin’s value drops. This unique structure attracts risk-averse investors.
Derivatives-Based Bitcoin ETFs
As derivatives-based Bitcoin ETFs gain traction, industry reports suggest that more firms may follow Calamos’ lead in introducing similar solutions for risk-averse investors. As derivatives-based Bitcoin ETFs gain traction, more financial firms will likely introduce similar investment solutions targeting risk-averse investors. Calamos, a notable player in the space, has already launched its own derivatives-based.
Bitcoin ETF and industry reports suggest this trend could expand. These ETFs expose investors to Bitcoin’s price movements without direct ownership of the underlying asset, providing an alternative for those cautious about the inherent volatility of cryptocurrency. As regulatory frameworks evolve and institutional adoption grows, derivatives-based Bitcoin ETFs are expected to attract more traditional investors looking for a safer entry into the Crypto market.
Summary
On January 22, 2025, Calamos Investments will launch the CBOJ Bitcoin ETF, guaranteeing 100% downside protection. ETF mixes Bitcoin options with U.S. CBOJ Bitcoin ETF Treasury bonds to minimize volatility and limit losses for risk-averse investors. CBOJ, inspired by Calamos’ successful 2024 Structured Protection ETF series, offers Bitcoin exposure with little risk by resetting protection and setting a fresh gain cap year. This novel ETF structure offers cautious investors a regulated, transparent approach to enjoying Bitcoin’s growth potential while reducing volatility.
