A prominent exchange-traded fund (ETF) provider aims to reduce bitcoin's notorious volatility.
On Wednesday, Calamos Investments unveiled the Calamos Bitcoin Structured Alt Protection ETF (CBOJ), which it describes as “the world’s first downside-protected bitcoin ETF.”
Designed for risk-averse investors, the fund seeks to provide a more secure avenue for participating in bitcoin’s growth potential.
“You can invest throughout the day, receive 100% downside protection, and at the end of the day, we strike the cap,” said Matt Kaufman, head of ETFs at Calamos, during an appearance on CNBC’s ETF Edge. “Bitcoin is a volatile asset ... we aim to prevent overnight price fluctuations from impacting investors.”
The launch coincides with a strong performance for bitcoin, which has risen 10% as of late Thursday afternoon, marking a winning month for the cryptocurrency.
According to a Calamos press release, the new fund offers access to bitcoin in a controlled-risk framework.
“Many investors have been reluctant to invest in bitcoin due to its extreme volatility,” Kaufman stated in the release. “Calamos aims to meet the needs of advisors, institutions, and individual investors by delivering solutions that capture bitcoin’s growth potential while minimizing the historically high volatility and drawdowns of this dynamic and high-performing asset.”
Calamos is preparing additional crypto-focused ETFs, including the Calamos Bitcoin 90 Series Structured Alt Protection ETF (CBXJ) and the Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ), both set to launch on February 4, according to the company’s website.
‘No Meme Coin ETFs From Calamos’
While Calamos is committed to offering innovative cryptocurrency funds, Kaufman emphasized during ETF Edge that the firm has no plans to include meme coin ETFs.
“You’re not going to see meme coin ETFs from Calamos,” he said. “But we’re focused on providing access to bitcoin in ways that align with varying risk tolerances.”
