A major exchange-traded fund provider is trying to take the volatility out of Bitcoin investing.
Calamos Investments on Wednesday launched the Calamos Bitcoin Structured Alt Protection ETF (CBOJ). The company calls this the “world’s first downside protection Bitcoin ETF.” Built with risk-sensitive investors in mind.
“You can invest all day long. You’re going to have 100% protection. And at the end of the day, you’re going to hit the cap,” Matt Kaufman, the firm’s head of ETFs, said on CNBC’s “ETF Edge” this week. ” he said. Bitcoin is a volatile asset…we don’t want the price of Bitcoin to fluctuate overnight. ”
The company launched a new Bitcoin ETF on Wednesday. It coincides with Bitcoin’s winning months. As of late Thursday afternoon, the cryptocurrency was up 10%.
According to a Calamos press release, the fund provides access to Bitcoin in a risk-controlled environment.
“Many investors are hesitant to invest in Bitcoin due to its high volatility,” Kaufman said in a release. “Calamos responds to the demand from advisors, institutions, and investors seeking solutions that capture Bitcoin’s growth potential while mitigating the historically high volatility and drawdowns of this fast-growing, high-performing asset. That’s what I’m aiming for.
Calamos also holds many more cryptocurrency funds. According to the Calamos website, the Calamos Bitcoin 90 Series Structured Alt Protection ETF (CBXJ) and Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ) will be launched on February 4th. That’s what it means.
“You won’t see a Calamos memecoin ETF.”
Despite the company’s desire to offer crypto funds, Kaufman told ETF Edge there is one group that Calamos won’t consider.
“You won’t see a Calamos memecoin ETF, but that’s what we’re here for, to be able to access Bitcoin in a way that meets your risk tolerance,” Kaufman said.
