Calamos Investments has announced the launch of a groundbreaking Bitcoin exchange-traded fund (ETF) offering full downside protection. Scheduled to debut on January 22, 2025, on the Chicago Board Options Exchange (CBOE), the ETF (ticker: CBOJ) combines U.S. Treasury bonds with Bitcoin-linked options to mitigate volatility while capturing growth potential.
Key Features of the CBOJ ETF
- 100% Downside Protection: Shields investors from losses while capping annual gains.
- Annual Reset Mechanism: Renews downside protection and upside caps each year.
- Dual-Asset Structure: Blends U.S. Treasuries with options tied to the CBOE Bitcoin US ETF Index.
- Risk-Managed Exposure: Ideal for advisors and institutions seeking Bitcoin exposure without extreme volatility.
"Calamos meets the demand for solutions that balance Bitcoin’s growth potential with reduced volatility," said Matt Kaufman, Head of ETFs at Calamos.
Why This ETF Stands Out
CBOJ pioneers a structured outcome approach in crypto ETFs, appealing to risk-averse investors. Unlike traditional Bitcoin ETFs:
- Annual Protection Reset: Ensures continuous downside coverage.
- Transparent Pricing: Upside caps determined by options markets (first cap set on launch day).
- Holding Period: January 22, 2025 – January 31, 2026.
👉 Discover how downside-protected ETFs redefine crypto investing
The Rising Trend of Crypto ETFs
CBOJ joins a wave of innovative crypto-ETFs, including:
- Spot Bitcoin ETFs (e.g., iShares Bitcoin Trust/IBIT) with $50B+ assets.
- Income-Generating Funds: Covered call ETFs proposed by Grayscale and Roundhill.
- 2025 Regulatory Tailwinds: Expected approvals under a crypto-friendly U.S. administration.
FAQs
Q: How does downside protection work in CBOJ?
A: The fund uses options and Treasuries to absorb losses, ensuring investors lose $0 even if Bitcoin crashes.
Q: What’s the upside potential?
A: Gains are capped annually (e.g., 20–30%), with reset terms published each year.
Q: Is this ETF suitable for long-term Bitcoin holders?
A: Designed for risk-aware investors, not maximalists seeking uncapped returns.
Q: Will more protected crypto-ETFs launch in 2025?
A: Yes. Firms like Innovator and First Trust are exploring similar products.
👉 Explore crypto-ETF strategies for 2025
Market Outlook for 2025
With a pro-crypto regulatory shift, analysts predict:
- Bitcoin ETFs gaining mainstream adoption.
- Altcoin ETFs (e.g., XRP, Dogecoin) potentially debuting.
- Structured products dominating advisor portfolios.
Final Thoughts
CBOJ represents a pivotal step in democratizing safe Bitcoin exposure. By merging traditional finance safeguards with crypto innovation, Calamos sets a benchmark for the industry’s future.
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