Calamos Launches Bitcoin ETF Offering 100% Downside Protection
A new exchange-traded fund (ETF) launched by Calamos provides protection against bitcoin price volatility. Key points include:
- ETF named CBOJ offers 100% downside protection with a potential upside of 10% to 11.5% over one year.
- As of midday ET, approximately 635,714 shares were traded.
- Two additional ETFs, CBXJ and CBTJ, launching on February 4, will offer 90% and 80% downside protection, respectively, with capped upsides of 28% to 30% and 50% to 55%.
- Downside protection is achieved through investments in U.S. Treasuries and options on Bitcoin index derivatives.
- Management fee is set at 0.69%, higher than the average U.S. ETF fee of 0.51%.
- Investors express concerns regarding bitcoin's volatility, influencing interest in these ETFs.
- Calamos' ETF differs from MicroStrategy's convertible bonds as it has an upside cap, while MSTR’s notes do not.
- Recent trends show increased demand for downside-protected ETFs amid evolving regulatory environments.
This innovation reflects ongoing efforts to balance exposure to cryptocurrencies with risk management strategies.