The financial investment landscape is witnessing a groundbreaking innovation as Calamos announces the expansion of its Protected Bitcoin ETF Suite—introducing the world’s first downside-protected Bitcoin exchange-traded funds (ETFs) with tiered protection levels. With the upcoming launches of CBXJ (90% downside protection) and CBTJ (80% downside protection), investors now gain access to structured, risk-managed exposure to Bitcoin’s upside potential, all within a transparent, tax-efficient ETF framework.
This strategic expansion follows the debut of CBOJ, the industry’s first 100% downside-protected Bitcoin ETF, reinforcing Calamos’ leadership in delivering innovative, options-based investment solutions tailored for volatile asset classes.
A New Era in Bitcoin Investing: Risk-Managed Exposure
Bitcoin has cemented its status as a legitimate asset class, attracting institutional and retail investors alike. However, its notorious volatility continues to deter risk-averse participants. Calamos addresses this challenge head-on with its Protected Bitcoin ETF Suite, offering a spectrum of protection levels that allow investors to align their exposure with personal risk tolerance and return objectives.
👉 Discover how structured Bitcoin ETFs can balance risk and reward in today’s volatile markets.
The Calamos Protected Bitcoin ETF Suite at a Glance
The suite comprises three ETFs—CBOJ, CBXJ, and CBTJ—each designed to deliver a specific balance between downside protection and upside capture over a one-year outcome period:
- CBOJ: 100% downside protection with an estimated cap range of 10%–11.5%
- CBXJ: 90% downside protection with an estimated cap range of 28%–31%
- CBTJ: 80% downside protection with an estimated cap range of 50%–55%
All three funds will be listed on Cboe and reset annually, providing investors with renewed upside potential and refreshed protection each year. The funds do not invest directly in Bitcoin but instead use a combination of U.S. Treasuries and options linked to the CBOE Bitcoin US ETF Index—a regulated and transparent benchmark.
How the Protection Mechanism Works
Each ETF is structured to mitigate downside risk while offering capped upside growth. The mechanism hinges on a dynamic blend of fixed-income securities and exchange-traded options:
- Downside Protection: Achieved through a portfolio of high-quality U.S. Treasury securities, which form the foundational asset base.
- Upside Participation: Enabled via call options on the CBOE Bitcoin US ETF Index, allowing the ETFs to participate in Bitcoin’s price appreciation—up to a predetermined cap.
Investors must hold shares for the full outcome period to realize the stated protection level. Purchasing after the start date may expose investors to reduced protection or increased risk of loss.
Key Launch Dates and Structure
- CBOJ will begin trading on January 22, 2025, with an initial net asset value (NAV) of $25 per share.
- CBXJ and CBTJ will follow on February 4, 2025.
- Cap rates for each fund will be finalized and announced at the close of trading on their respective launch dates.
- Outcome periods run through January 30, 2026, ensuring alignment across the suite.
All funds carry an annual expense ratio of 0.69%, managed by Co-CIO Eli Pars and Calamos’ Alternatives Team, leveraging the firm’s proven expertise in structured outcomes.
Addressing Investor Concerns: Volatility and Accessibility
“Bitcoin's acceptance as an investible asset is growing, yet concerns about its volatility remain,” said Matt Kaufman, Head of ETFs at Calamos. “Our suite of downside protected Bitcoin ETFs will offer a menu of straightforward solutions designed to provide true risk management for this unique asset where investors can select their preferred level of protection and related upside capture based on their specific circumstances.”
This tiered approach empowers investors to make informed decisions—choosing higher protection for capital preservation or accepting slightly more risk for greater upside potential.
Built on Proven Innovation
The Protected Bitcoin ETF Suite builds upon the success of Calamos’ Structured Protection ETF series launched in 2024, which offered 100% downside protection on major equity indices like the S&P 500®, Nasdaq-100®, and Russell 2000®. With over $40 billion in assets under management, including $18 billion in liquid alternatives as of December 31, 2024, Calamos brings deep experience in risk-managed strategies.
Frequently Asked Questions (FAQ)
Q: How does the downside protection work?
A: The ETFs use U.S. Treasuries to preserve capital and options to gain exposure to Bitcoin’s upside. If held for the full outcome period, investors are protected from 80%, 90%, or 100% of Bitcoin’s losses, before fees.
Q: Can I lose money investing in these ETFs?
A: Yes. While the funds aim to limit losses, there is no guarantee. Investors who buy after the start of the outcome period may not benefit from full protection and could lose principal.
Q: Do these ETFs own Bitcoin directly?
A: No. They invest in options tied to the CBOE Bitcoin US ETF Index, which tracks underlying Bitcoin exchange-traded products (ETPs).
Q: What happens if Bitcoin surges past the cap?
A: Any gains beyond the predetermined cap are not captured. The ETFs are designed for investors seeking defined upside within a risk-controlled framework.
Q: Are these funds suitable for long-term holding?
A: The funds reset annually. While shares can be held indefinitely, optimal results are achieved by holding through each full outcome period.
Q: Is there counterparty credit risk?
A: No. The structure eliminates counterparty credit risk, offering a secure investment vehicle within the ETF ecosystem.
👉 Learn how regulated Bitcoin exposure can fit into a diversified portfolio strategy.
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Final Thoughts: A Strategic Step Forward
Calamos’ Protected Bitcoin ETF Suite represents a pivotal advancement in digital asset investing. By combining regulatory compliance, structural transparency, and investor-friendly risk parameters, these funds lower the barrier to entry for cautious investors seeking exposure to Bitcoin’s growth potential.
As the crypto market matures, demand for sophisticated, risk-aware products will only grow. Calamos is positioning itself at the forefront—with solutions that don’t just follow trends but redefine them.
👉 Explore how next-generation ETF structures are reshaping crypto investing.