- Calamos is launching a Bitcoin ETF with 100% draw back safety named CBOJ in January.
- The ETF combines Treasury bonds and Bitcoin choices to mitigate funding dangers.
- CBOJ affords annual safety resets and caps potential positive aspects for threat administration.
Calamos Investments is ready to launch a groundbreaking Bitcoin exchange-traded fund (ETF) providing 100% draw back safety.
Scheduled to debut on the Chicago Board Choices Change (CBOE) on January 22, the brand new ETF, named CBOJ, is designed to handle Bitcoin’s volatility whereas offering development alternatives, in accordance with an organization announcement.
Calamos’ Structured Safety ETF collection
CBOJ builds upon the success of Calamos’ Structured Safety ETF collection, launched in 2024. This collection supplied related draw back safety mechanisms for inventory indices just like the S&P 500 and Nasdaq-100.
By extending these ideas to Bitcoin, Calamos seeks to satisfy the calls for of advisors, establishments, and traders searching for a solution to seize Bitcoin’s development potential whereas mitigating its traditionally excessive volatility.
Bitcoin has traditionally been a extremely risky asset, typically deterring risk-averse traders. The CBOJ ETF goals to beat this problem by guaranteeing that traders don’t lose cash, even when Bitcoin’s worth declines.
This progressive fund achieves draw back safety by integrating US Treasury bonds with choices tied to the CBOE Bitcoin US ETF Index. The mix gives a regulated and clear avenue for gaining Bitcoin publicity whereas minimizing related dangers.
CBOJ ETF’s annual safety reset
One of many distinctive options of the CBOJ ETF is its annual reset of draw back safety. Annually, traders profit from a brand new cap on potential positive aspects whereas sustaining full safety in opposition to losses for the subsequent 12 months.
This construction ensures ongoing threat mitigation and aligns with the dynamic nature of the Bitcoin market.
“Many traders have been hesitant to spend money on Bitcoin resulting from its epic volatility,” mentioned Matt Kaufman, Head of ETFs at Calamos. “Calamos seeks to satisfy advisor, institutional, and investor calls for for options that seize Bitcoin’s development potential whereas mitigating the traditionally excessive volatility and drawdowns of the asset.”
ETFs are funding funds that commerce like shares on exchanges, permitting traders to pool their cash right into a fund holding numerous belongings. With CBOJ, traders achieve publicity to Bitcoin with out the necessity to personal the cryptocurrency straight. This protecting construction makes the ETF particularly interesting to cautious traders seeking to navigate the crypto market’s infamous worth swings.
As derivatives-based Bitcoin ETFs achieve traction, trade studies counsel that extra companies could observe Calamos’ lead in introducing related options for risk-averse traders.
