Calamos Investments, a global leader in innovative investment solutions, has announced the launch of its Protected Bitcoin ETF Suite, introducing two groundbreaking ETFs:
- CBXJ: Offers 90% downside protection with an estimated upside cap of 28%-31%.
- CBTJ: Provides 80% downside protection and an estimated cap range of 50%-55%.
This expansion follows the upcoming release of CBOJ, the world’s first 100% protected Bitcoin ETF, set to debut on January 22, 2025, with a cap range of 10%-11.5%.
Key Features of the Calamos Bitcoin ETF Suite
| ETF | Downside Protection | Estimated Cap Range | Launch Date | Outcome Period | Annual Expense Ratio |
|---|---|---|---|---|---|
| CBOJ | 100% | 10%-11.5% | 01/22/2025 | 1/22/25-1/30/26 | 0.69% |
| CBXJ | 90% | 28%-31% | 02/04/2025 | 02/04/25-1/30/26 | 0.69% |
| CBTJ | 80% | 50%-55% | 02/04/2025 | 02/04/25-1/30/26 | 0.69% |
Why This Matters
- Risk-Managed Bitcoin Exposure: Combines Bitcoin’s growth potential with structured downside protection.
- Liquidity & Transparency: ETFs offer a regulated, tax-efficient vehicle with no counterparty risk.
- Flexible Choices: Investors can select protection levels (100%, 90%, or 80%) aligned with their risk tolerance.
👉 Learn more about Bitcoin ETF investments
How the ETFs Work
- Underlying Strategy: Uses Treasuries and options tied to the CBOE Bitcoin US ETF Index.
- Annual Reset: Caps and protection levels refresh each year, allowing indefinite holding.
- NAV Pricing: CBOJ launches at $25 NAV, ensuring 100% protection from Day 1.
Addressing Investor Concerns
"Bitcoin’s volatility remains a barrier for many investors," said Matt Kaufman, Head of ETFs at Calamos. "Our suite offers tailored solutions to mitigate downside while capturing upside."
FAQs
Q: What happens if I sell before the Outcome Period ends?
A: Protection levels are only guaranteed if held for the full period. Early exits may result in losses.
Q: Are there fees?
A: Yes, each ETF has an annual expense ratio of 0.69%.
Q: How are cap rates determined?
A: Rates are based on pre-launch market conditions and finalized on the launch date.
Q: Can I lose all my money?
A: While designed to limit losses, extreme scenarios could still lead to partial or total loss of capital.
👉 Explore advanced Bitcoin investment strategies
The Bigger Picture
Calamos leverages its expertise in structured protection ETFs, having pioneered similar strategies for major indices like the S&P 500® and Nasdaq-100®. This Bitcoin suite marks a milestone in bridging crypto’s potential with institutional-grade risk management.
Key Risks
- Market Volatility: Caps may limit gains during Bitcoin rallies.
- Digital Asset Risks: Bitcoin’s nascent regulatory landscape and technological evolution pose uncertainties.
- Outcome Period Dependency: Protection hinges on holding through the full term.
Calamos Investments manages over $40 billion in assets, with $18B in liquid alternatives. Learn more at www.calamos.com.
Disclaimer: Investing involves risks. Consult the prospectus before investing. Cap ranges are estimates and subject to change.