tl;dr
Calamos Investments has filed with the SEC for three new Structured Protection ETFs offering capital-protected growth strategies with Bitcoin exposure over one-year periods. The ETFs provide different levels of downside protection: full loss protection, 20% loss cap, and 10% loss cap, appealing to i...
Calamos’ Structured Protection ETF suite offers financial advisors and investors monthly entry points into capital-protected growth strategies with exposure to Bitcoin over one-year outcome periods. This landmark product adds to a growing lineup of ETFs focused on the leading cryptocurrency asset.
Calamos Investments, managing over $40 billion in assets, recently filed with the SEC for three separate ETFs: the Calamos Laddered Bitcoin Structured Alt Protection ETF (CBOY), which matches Bitcoin’s positive spot price return up to a defined cap while protecting 100% against losses over one year; the Laddered Bitcoin 80 Series Structured Alt Protection ETF (CBTY), which caps losses at 20% over one year and still matches Bitcoin returns up to a cap; and the Laddered Bitcoin 90 Series Structured Alt Protection ETF (CBXY), which limits losses to 10% over the same period. Each fund offers varying degrees of downside protection tailored for different investor risk appetites.
Matt Kaufman, head of ETFs at Calamos, explains that these ETFs create a bridge for financial advisors and investors skeptical of Bitcoin’s notorious volatility. The products appeal to those who want crypto exposure with built-in limits on losses and gains.
These ETFs operate using options and gain exposure to the performance of up to five major Bitcoin ETFs by assets under management: iShares Bitcoin Trust ETF (IBIT), Grayscale Bitcoin Mini Trust (BTC), Bitwise Bitcoin ETF (BITB), Fidelity Wise Origin Bitcoin Fund (FBTC), and Ark 21 Shares Bitcoin ETF (ARKB). The "laddered" structure means investing across different Bitcoin ETFs with varied outcome periods, providing diversification across time.
Kaufman highlights that the portfolios’ risk-adjusted returns can be tailored, potentially encouraging investors to allocate more than the usual 1-2% of a portfolio to Bitcoin. This strategy may especially appeal to early-stage crypto investors who have seen substantial wealth growth but now seek to reduce risk by shifting from direct Bitcoin holdings to ETFs.
The institutional appetite for Bitcoin ETF products remains strong, with recent inflows hitting $7.78 billion over just seven days. BlackRock’s IBIT fund notably generated higher revenue than an S&P 500 tracking fund in only 1.5 years since inception. Among the competitive landscape, the Trump Media & Technology Group filed for a Bitcoin ETF last month, underscoring the growing momentum behind crypto-focused exchange-traded funds.