Global investment company Calamos has revealed that its Bitcoin exchange-traded fund (ETF) ticker will be CBOJ, available on the Chicago Board Options Exchange (CBOE) on Jan. 22.
The company’s statement revealed that this Bitcoin ETF ensures that investors do not lose money regardless of BTC’s price decline. Now they can invest in CBOJ with extra protection.
A Contrast to Traditional ETFs
The investment manager aims to achieve this loss protection by combining options tied to the CBOE BTC US ETF index with treasury bonds. The firm is confident that this system will minimize risk while offering a regulated way to gain BTC exposure.
CBOJ is the latest product in the Calamos Structured Protection ETF products, which the firm debuted last year. The firm has similar products for stock indices like the Nasdaq-100 and the S&P 500.
A significant difference between CBOJ and traditional ETFs is the annual protection reset. Each year, Calamos changes the limit of investors’ potential gains but guarantees them total protection against losses regarding their initial investments.
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Matt Kaufman, a top-level executive at Calamos, explained that Calamos’ goal is to provide solutions that enable investors and advisors to benefit from Bitcoin’s growth without experiencing the crypto asset’s high volatility and drawdowns.
Last month, a Financial Times report revealed that asset managers, including Calamos, will introduce derivatives-based Bitcoin ETFs to help risk-averse investors profit from cryptocurrencies’ huge price swings even though there will be a limit to the profits they can make.
Like other Bitcoin ETFs, Calamos’ CBOJ will allow investors to benefit from BTC’s price gains without directly owning the cryptocurrency.
Increased interest in Bitcoin ETFs
The Bitcoin ETF market has grown rapidly in the last year. According to SoSoValue data, total inflows into the twelve US Spot BTC ETFs was $908 million on Jan. 3 alone.
Hence, competition among these ETFs will be intense this year. Many asset managers intending to enter the market must offer unique ways to gain a foothold, different from Calamos’ CBOJ investor protection offer.
