Calamos Investments recently announced that a new Bitcoin exchange-traded fund, CBOJ will be launched on CBOE Global Markets starting on Monday, January 22, 2019.
According to the Jan. 6 statement, this ETF promises 100% downside protection, providing investors a risk-managed way to participate in Bitcoin’s performance.
CBOJ
CBOJ protects itself against loss by combining US Treasuries with options tied to the CBOE Bitcoin US ETF Index.
Each year, the fund is reset to a fresh 12-month protection period and a new cap on upside. This allows for long-term owners to enjoy continuous risk management.
Nate Geraci, president of ETF Store, emphasized the appeal of CBOJ’s structure. The ETF provides full protection against downside for investors who keep it until the end of the period. It does, however, limit the upside potential.
Matt Kaufman, Head of ETFs at Calamos, pointed out that many investors and advisors seek tools to capture Bitcoin’s growth potential while managing its inherent risks.
He said:
“Many investors have been hesitant to invest in bitcoin due to its epic volatility. [CBOJ] meet advisor, institutional and investor demands for solutions that capture bitcoin’s growth potential while mitigating the historically high volatility and drawdowns of this fast-growing and high performing asset.”
CBOJ builds on the success of the firm’s Structured Protection ETF series, introduced in 2024. This series provides comprehensive downside protection strategies for indices such as the S&P 500.
Calamos has roughly $40 billion in assets under management and specializes in strategies across ETFs, mutual funds, closed-end funds, interval funds, and UCITS funds.
Bitcoin ETF competitive landscape
Over the last year, the Bitcoin ETF has experienced explosive growth. Twelve products have seen inflows totaling over $35 billion. BlackRock’s IBIT led the charge by amassing over $53 billion in assets within its first year.
Market analysts noted this trend reflects increased investor interest in Bitcoin related products, and they expect it to continue throughout the year.
Bloomberg ETF analyst Eric Balchunas highlighted the intense competition in the market, remarking that the unique structure and timing of CBOJ’s launch underscore how “ultra-competitive this new frontier is.”
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