In a groundbreaking move for the digital asset investment landscape, Calamos has unveiled an innovative suite of Protected Bitcoin ETFs designed to offer investors structured exposure to bitcoin with defined downside protection and capped upside potential. This launch marks a significant evolution in risk-managed crypto investing, combining the volatility-absorbing power of options strategies with the regulatory clarity and tax efficiency of the ETF structure.
The newly introduced Calamos Protected Bitcoin ETF Suite includes three distinct funds: CBOJ, CBXJ, and CBTJ—each engineered to deliver varying levels of capital protection over a one-year outcome period. These ETFs are built on Calamos’ proven track record with structured outcome products, extending their successful model from traditional equity indices like the S&P 500® and Nasdaq-100® into the rapidly maturing bitcoin market.
A Strategic Expansion in Risk-Managed Crypto Investing
At the core of this innovation is investor demand for downside protection without sacrificing complete access to bitcoin’s upside. While bitcoin has gained institutional acceptance as a legitimate asset class, its price volatility continues to deter conservative or risk-averse investors. Calamos addresses this challenge by offering a menu of solutions where investors can choose their preferred balance between capital preservation and growth potential.
👉 Discover how structured Bitcoin ETFs can align with your risk tolerance and investment goals.
The Protected Bitcoin ETF Lineup
- CBOJ (100% Downside Protection)
Launching on January 22, 2025, CBOJ aims to fully shield investors from bitcoin losses over the outcome period (January 22, 2025 – January 30, 2026), while offering a capped return based on bitcoin’s positive performance. This fund is ideal for investors seeking maximum capital protection with moderate upside exposure. - CBXJ (90% Downside Protection)
Set to debut on February 4, 2025, CBXJ provides 90% protection against bitcoin declines, allowing for a higher upside cap compared to CBOJ. It suits those willing to accept slightly more risk for potentially stronger returns. - CBTJ (80% Downside Protection)
Also launching on February 4, 2025, CBTJ offers 80% downside shielding with the highest estimated cap among the trio, appealing to investors with a more aggressive risk profile who still desire structured risk controls.
All three funds will reset annually, enabling investors to reinvest under updated market conditions and new cap rates determined at the start of each cycle. This annual reset mechanism ensures that protection levels remain relevant amid evolving market dynamics.
How These ETFs Work: Structure and Strategy
Rather than holding bitcoin directly, these ETFs use a combination of U.S. Treasuries and exchange-traded options linked to the CBOE Bitcoin US ETF Index, which tracks the performance of regulated bitcoin exchange-traded products (ETPs). This indirect exposure allows for regulatory compliance, transparency, and eliminates counterparty credit risk typically associated with over-the-counter derivatives.
Each fund seeks to replicate the positive price return of spot bitcoin—up to a predetermined cap—while mitigating losses within their respective protection bands. For example:
- If bitcoin drops 30% during the outcome period, CBOJ holders would lose nothing (after fees), CBXJ investors would absorb up to 3% loss (10% of 30%), and CBTJ investors could face up to 6% loss (20% of 30%).
- Conversely, if bitcoin rises sharply, gains are limited by the fund’s cap rate, which will be finalized and announced at launch.
This design offers predictability: investors know both the maximum potential loss and the ceiling on gains at the outset.
Proven Framework Extended to Digital Assets
These new ETFs build upon Calamos’ established Structured Protection ETF series, launched in 2024, which brought downside protection strategies to major equity indices. With over $XX billion in assets under management (AUM) and deep expertise in alternatives and risk-managed investing, Calamos applies the same disciplined, rules-based approach to bitcoin—a first in the industry.
“The acceptance of bitcoin as an investible asset is growing,” said Matt Kaufman, Head of ETFs at Calamos. “Yet concerns about its volatility remain. Our suite offers straightforward solutions designed to provide true risk management.”
Key Features & Investor Benefits
- Annual Outcome Periods: Clear timeframes for protection and upside capture.
- No Direct Crypto Ownership: Avoids custody and security risks.
- Transparency & Liquidity: Listed on Cboe with intraday pricing.
- Tax Efficiency: Standard ETF tax treatment.
- Low Expense Ratio: Competitive annual fee of 0.69% across all three funds.
- Flexible Access: Shares can be held indefinitely, with new outcome periods beginning each year.
👉 Learn how you can gain regulated, tax-efficient exposure to Bitcoin’s upside with controlled risk.
Frequently Asked Questions (FAQ)
Q: Do these ETFs hold actual bitcoin?
A: No. The funds do not invest directly in bitcoin. Instead, they use financial instruments such as options on regulated bitcoin ETPs to track bitcoin’s price performance.
Q: How is downside protection achieved?
A: Protection is built using a combination of U.S. Treasuries and options strategies that hedge against losses in bitcoin’s price over a defined one-year period.
Q: What happens if I buy shares after the outcome period begins?
A: Investors who purchase after Day One may not benefit from the full protection level or achieve the stated cap. Maximum effectiveness occurs when shares are bought at launch and held through maturity.
Q: Are gains guaranteed?
A: No. While the funds aim to achieve their target outcomes, there is no guarantee. Market conditions, timing of purchases, and other factors can impact results.
Q: Can I lose money even with downside protection?
A: Yes. Although CBOJ targets full loss protection, fees and expenses are deducted before protection applies. Additionally, buying after launch or selling before maturity may result in losses.
Q: When will the cap rates be announced?
A: The final cap rate for CBOJ will be set on January 22, 2025, after market close. CBXJ and CBTJ cap rates will be announced on February 4, 2025.
Core Keywords
Protected Bitcoin ETF, downside protection, risk-managed Bitcoin investing, capped upside ETF, structured outcome ETF, bitcoin volatility hedge, regulated Bitcoin exposure, annual reset ETF
Investors should carefully consider each fund’s investment objectives, risks, charges, and expenses by reviewing the prospectus before investing. An investment in these funds is not insured by the FDIC or any government agency and involves the risk of loss.