Calamos to launch Bitcoin ETF with 100% downside protection

Calamos Investments is introducing a Bitcoin exchange-traded fund with 100% downside protection. 

Set to debut on the Chicago Board Options Exchange on Jan. 22, the ETF, called CBOJ, aims to address Bitcoin’s volatility while offering growth potential, according to a company release.

Bitcoin (BTC) has often deterred risk-averse investors due to its significant price swings. The CBOJ ETF seeks to change that by ensuring investors do not lose money, even if Bitcoin’s value declines.

The fund achieves this protection by combining U.S. Treasury bonds with options tied to the CBOE Bitcoin US ETF Index. This structure provides a regulated and transparent way to gain Bitcoin exposure while minimizing risk.

CBOJ builds on Calamos’ Structured Protection ETF series, which launched in 2024 and provided similar protection for stock indices like the S&P 500 and Nasdaq-100. 

Annual protection reset

Unlike traditional ETFs, CBOJ resets its downside protection annually. Each year, investors receive a new cap on potential gains while retaining full protection against losses for the next 12 months.

“Many investors have been hesitant to invest in bitcoin due to its epic volatility,” said Matt Kaufman, Head of ETFs at Calamos. “Calamos seeks to meet advisor, institutional and investor demands for solutions that capture Bitcoin’s growth potential while mitigating the historically high volatility and drawdowns of [the asset].”

A report in December of 2024 claimed that several major exchanges, like Calamos, will turn to new derivatives-based Bitcoin ETFs to help cautious investors navigate the crypto’s notorious price swings.

ETFs are investment funds that trade like stocks on exchanges, allowing investors to pool their money into a fund that holds various assets.

Essentially, CBOJ offers a way for investors to gain exposure to Bitcoin without directly owning it, while mitigating risks through its protective structure.