- Calamos is launching a 100% downside-protected Bitcoin ETF known as CBOJ in January.
- The ETF combines authorities bonds and bitcoin choices to mitigate funding dangers.
- CBOJ affords annual safety resets and potential revenue limits for threat administration.
Calamos Investments is ready to launch a revolutionary Bitcoin Change Traded Fund (ETF) that gives 100% draw back safety.
The brand new ETF, named CBOJ, is ready to debut on the Chicago Board Choices Change (CBOE) on January 22 and is designed to handle bitcoin's volatility whereas offering development alternatives, in accordance with the corporate's announcement.
The Structured Safety ETF Sequence by Calamos
CBOJ builds on the success of the Calamos Structured Safety ETF sequence, launched in 2024. This sequence offered related draw back safety mechanisms for inventory indexes such because 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 strategy to seize bitcoin's development potential whereas mitigating its traditionally excessive volatility.
Bitcoin is a traditionally extremely unstable asset that usually deters risk-averse traders. The CBOJ ETF goals to beat this problem by making certain that traders donβt lose cash even when the worth of Bitcoin declines.
This progressive fund achieves draw back safety by integrating US Treasuries with choices linked to the CBOE Bitcoin US ETF index. This mixture offers a regulated and clear strategy to achieve publicity to Bitcoin whereas minimizing related dangers.
CBOJ ETF Annual Safety Reset
One of many distinctive options of the CBOJ ETF is the annual reset of draw back safety. Annually, traders profit from a brand new cap on potential beneficial properties whereas sustaining full loss safety for the next 12 months.
This construction ensures ongoing threat mitigation and is in keeping with the dynamic nature of the Bitcoin market.
βMany traders have been hesitant to spend money on bitcoin as a result of its epic volatility,β stated Matt Kaufman, head of ETFs at Calamos. βCalamos strives to satisfy the calls for of advisors, establishments and traders for options that seize the expansion potential of Bitcoin whereas mitigating traditionally excessive volatility and asset drain.β
ETFs are funding funds that commerce like shares on exchanges, permitting traders to pool their cash right into a fund containing numerous property. With CBOJ, traders achieve publicity to Bitcoin with out proudly owning the cryptocurrency instantly. This protecting construction makes the ETF significantly enticing to cautious traders who need to navigate the crypto market's infamous worth swings.
As derivatives-based bitcoin ETFs achieve traction, business reviews counsel extra companies might observe Calamos' lead in introducing related options for risk-averse traders.