- 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 gives annual safety resets and caps potential good points for danger 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 progress alternatives, based on a company announcement.
Calamos’ Structured Safety ETF collection
CBOJ builds upon the success of Calamos’ Structured Safety ETF collection, launched in 2024. This collection offered related draw back safety mechanisms for inventory indices just like the S&P 500 and Nasdaq-100.
By extending these rules to Bitcoin, Calamos seeks to satisfy the calls for of advisors, establishments, and traders in search of a solution to seize Bitcoin’s progress potential whereas mitigating its traditionally excessive volatility.
Bitcoin has traditionally been a extremely risky asset, usually 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 mixture 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. Every year, traders profit from a brand new cap on potential good points whereas sustaining full safety towards losses for the subsequent 12 months.
This construction ensures ongoing danger mitigation and aligns with the dynamic nature of the Bitcoin market.
“Many traders have been hesitant to put money into Bitcoin resulting from its epic volatility,” stated Matt Kaufman, Head of ETFs at Calamos. “Calamos seeks to satisfy advisor, institutional, and investor calls for for options that seize Bitcoin’s progress 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 property. With CBOJ, traders achieve publicity to Bitcoin with out the necessity to personal the cryptocurrency instantly. This protecting construction makes the ETF particularly interesting to cautious traders trying to navigate the crypto market’s infamous value swings.
As derivatives-based Bitcoin ETFs achieve traction, trade studies counsel that extra companies could comply with Calamos’ lead in introducing related options for risk-averse traders.