Bitcoin ETFs Launched by Calamos with Built-In Risk Management

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Bitcoin ETFs Launched by Calamos with Built-In Risk Management

Calamos Investments brings protected Bitcoin ETFs to the market to let investors gain Bitcoin exposure with controlled volatility risks.

On Jan. 20, CBOJ became the first offering in the series. It provided investors with 100% protection from loss while capping their upside return at 11.5%. Calamos Investments will introduce CBXJ and CBTJ on February 4 alongside their first exchange-traded fund, CBOJ. 

These products will shield 90% of CBXJ’s investments and 80% of CBTJ’s holdings while allowing for increased returns of 28%–31% and 50%–55%, respectively.

Calamos Leverages Treasuries and Bitcoin ETF for Risk Control

Each fund creates risk-managed Bitcoin exposure by using U.S. Treasury securities alongside options on Bitcoin index derivatives. According to a public release, the company wants to provide risk-controlled Bitcoin exposure in a tax-friendly ETF platform without relying on external parties.

Matt Kaufman explained Bitcoin’s inflation protection potential during his CNBC conversation about Calamos’ ETF launch. He said:

“We’re expecting a pro-crypto economy over the next several years here. We saw a strategic petroleum reserve over 50 years ago […] We have gold reserves. So if you build a Bitcoin reserve, we think now is a good time to do it.” 

According to Kaufman, the CBOJ represents the first ETF of this kind because it protects 100% of Bitcoin price declines during a single year. Our predictions show that crypto and the economy will benefit each other for years ahead.

Crypto ETF Demand Soars with New Offerings

The crypto ETF sector is experiencing rising demand as the new announcement joins other developments in the space. On January 21, asset manager Osprey Funds and REX Shares submitted ETF applications to invest in Dogecoin and similar tokens like Bonk and Official Trump to serve the growing market interest in crypto diversification.

Ethereum-based ETFs keep building momentum as investors show higher interest in this asset class. Joe Lubin suggests from ConsenSys that Ether fund issuers expect regulators to authorize the stake-based products. 

The US Securities and Exchange Commission authorized spot Ether ETFs in 2024, and companies launched nine products in July while they continue to review staked Ether ETFs.

According to Kaufman, the debut of Calamos’ protected Bitcoin ETF suite marks an important move towards letting more investors invest securely in cryptocurrency under regulatory control.

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