In 2024, Bitcoin ETFs gained popularity, prompting asset management firms to explore innovative investment options that blend cryptocurrency and derivatives. Calamos Asset Management plans to launch a unique structured protection ETF, allowing investors to benefit from Bitcoin’s potential upside while ensuring full downside protection. This fund, trading under the ticker CBOJ, combines options exposure with Treasury holdings and is designed for a 12-month holding period. The rise in Bitcoin funds has already led to significant inflows, with popular ETFs surpassing $50 billion in total assets. Other firms like Innovator and First Trust are also developing similar products, highlighting a growing interest in risk-managed investments in the crypto space.
Bitcoin ETFs Gain Popularity as Calamos Launches Protective Fund
Bitcoin, the leading cryptocurrency, continues to capture investor interest, especially following the successful launch of Bitcoin exchange-traded funds (ETFs) in early 2024. This year has seen a transformation in how investors engage with crypto assets, and asset management firms are now innovating new products that combine cryptocurrencies with traditional investment strategies.
Earlier this week, Calamos Investments announced it would introduce a groundbreaking structured protection ETF. This new fund is designed to allow investors to benefit from Bitcoin’s potential upside while providing a remarkable 100% downside protection. This means that no matter how much Bitcoin’s price drops, investors’ investments will be safeguarded. The fund will use options linked to the Cboe Bitcoin U.S. ETF Index alongside Treasury holdings, aiming for a one-year holding period. The fund is expected to be listed under the ticker CBOJ.
What’s exciting about this ETF is that it represents a significant shift in the way crypto investments are approached. With many retail investors looking for safer ways to gain exposure to Bitcoin, structured products like these could win over financial advisors who have been hesitant to recommend cryptocurrencies due to their notorious volatility. Calamos’ Head of ETFs, Matt Kaufman, expressed confidence that this innovative structure will appeal to those looking for a risk-managed approach to cryptocurrency investing.
The popularity of Bitcoin ETFs has skyrocketed, surging to over $50 billion in total assets. Bitcoin has also continued its impressive rally thanks to these financial products. After the approval of spot Bitcoin funds earlier this year, the cryptocurrency reached a remarkable high of over $100,000.
Looking forward, Calamos is not alone in this venture. Other firms, including Innovator and First Trust, are pursuing similar strategies to integrate crypto exposure with various income-generating approaches. In fact, more funds are expected to be filed throughout 2025, especially as regulatory changes may create a friendlier environment for cryptocurrency investments.
An exciting aspect of the Calamos fund is its design for long-term holding. While options-based investments can be beneficial, they come with their own risks; selling too early might result in lower returns or potential losses. Nonetheless, Calamos plans to offer additional “floor” funds that would protect against 90% and 80% of potential losses, which could cater to different investor preferences.
As the cryptocurrency Market evolves, the interaction between Bitcoin and traditional investment strategies will be a key area to watch. The emergence of more protective products could pave the way for broader acceptance of cryptocurrencies among conservative investors.
In summary, the world of cryptocurrencies is changing rapidly, with Bitcoin ETFs leading the charge. As innovative financial products are launched, investors will have more ways to engage with this exciting and volatile Market.
Tags: Bitcoin, Cryptocurrency, ETF, Calamos, Investment Strategies, Financial Products, Bitcoin Invesment, Financial Advisors, Wealth Management.
What are the new ETFs in 2025 that combine bitcoin exposure and options?
In 2025, new exchange-traded funds (ETFs) will be available that give investors exposure to bitcoin as well as options trading. This means you can invest in bitcoin through these funds and also use options to manage risk or enhance returns.
How do these ETFs work?
These ETFs work by pooling money from many investors to buy bitcoin and options contracts. The funds aim to track the price of bitcoin while also providing the benefits of options, which can protect your investment or help you earn more money.
Why invest in bitcoin ETFs with options?
Investing in bitcoin ETFs with options can be beneficial because they offer a way to invest in bitcoin while also providing tools to manage risk. Options can allow you to hedge against price drops or take advantage of price movements, making your investment strategy more flexible.
Are these ETFs safe?
Like all investments, these ETFs come with risks. Bitcoin is known for being volatile, and options trading can also be risky. It’s essential to do your research and understand how the ETF works before investing.
Who should consider these ETFs?
These ETFs might be suitable for investors who are comfortable with some level of risk and want exposure to bitcoin. They are also good for those interested in options trading as part of their investment strategy. If you’re unsure, consider talking to a financial advisor.
