Investment management firm Calamos is set to launch the world's first 100% downside-protected Bitcoin ETF, offering investors exposure to BTC with built-in risk mitigation. The fund, scheduled for listing on CBOE on January 22 under the ticker CBOJ, combines Treasury securities with options on the CBOE Bitcoin U.S. ETF Index—a benchmark tracking U.S. spot Bitcoin ETFs.
How the Calamos Bitcoin ETF Works
- Downside Protection: Uses Treasury securities and options to shield investors from Bitcoin price declines.
- Annual Reset: Adjusts upside caps yearly, trading potential higher returns for guaranteed protection against losses.
- Long-Term Holding: CBOJ units can be held indefinitely, unlike traditional structured products with expiration dates.
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Why This ETF Matters Now
The launch coincides with record institutional crypto adoption:
- $44.2 billion flowed into digital asset funds in 2024 (4x 2021's peak).
- Spot Bitcoin ETFs like BlackRock's IBIT amassed $50B+ AUM in their debut year.
- Bitcoin traded at $101,696.58 (+2.03% daily) at press time, highlighting market volatility.
Structured Protection ETF Series
CBOJ expands Calamos' successful lineup, including:
| ETF Ticker | Underlying Asset | Protection |
|---|---|---|
| CPSY | S&P 500 | 100% |
| CPRY | Russell 2000 | 100% |
FAQs: Calamos Bitcoin ETF Explained
Q: How does downside protection work in this Bitcoin ETF?
A: Treasury securities cover principal, while options hedge against BTC price drops—ensuring no loss if Bitcoin declines.
Q: What’s the trade-off for protection?
A: Investors accept capped upside potential (reset annually) in exchange for guaranteed safety during downturns.
Q: Can I hold CBOJ long-term?
A: Yes, unlike structured notes with maturity dates, this ETF has no expiration.
Q: How does this compare to other Bitcoin ETFs?
A: Unlike spot ETFs (e.g., IBIT) that track BTC directly, CBOJ combines price exposure with institutional-grade risk management.
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Market Context
The ETF debut follows Bitcoin's resurgence as a mainstream asset:
- Institutions now view BTC as a macro hedge and inflation-resistant store of value.
- Regulatory clarity around U.S. spot ETFs has accelerated capital inflows.
- Analysts project continued growth as traditional finance adopts crypto solutions.
Note: All data sourced from public filings and market analytics platforms. This is not investment advice.