Calamos Investments has announced the launch of a groundbreaking Bitcoin exchange-traded fund (ETF) offering 100% downside protection. Scheduled to debut on the Chicago Board Options Exchange (CBOE) on January 22, the new ETF, named CBOJ, is designed to handle Bitcoin’s volatility while providing growth opportunities.
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Innovative Risk Management
The CBOJ ETF combines US Treasury bonds with options tied to the CBOE Bitcoin US ETF Index to mitigate investment risks. This innovative approach ensures that investors do not lose money, even if Bitcoin’s value declines. The ETF’s structure provides a regulated and transparent avenue for gaining Bitcoin exposure while minimizing associated risks.
One of the unique features of the CBOJ ETF is its annual reset of downside protection. Each year, investors benefit from a new cap on potential gains while maintaining full protection against losses for the next 12 months. This structure ensures ongoing risk mitigation and aligns with the dynamic nature of the Bitcoin market.
Meeting Investor Demands
Calamos’ Structured Protection ETF series, introduced in 2024, provided similar downside protection mechanisms for stock indices like the S&P 500 and Nasdaq-100. By extending these principles to Bitcoin, Calamos seeks to meet the demands of advisors, institutions, and investors looking for a way to capture Bitcoin’s growth potential while mitigating its historically high volatility.
Conservative investors trying to negotiate the infamous price swings of the crypto market will find the CBOJ ETF particularly tempting. By offering 100% downside protection, the ETF allows investors to participate in Bitcoin’s growth while preserving their wealth. This ETF can be a game-changer for those who want to benefit from Bitcoin’s potential without the fear of losing their investment. It’s a smart move that can attract a whole new wave of investors to the cryptocurrency market.
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