In 2024, Bitcoin exchange-traded funds (ETFs) gained immense popularity, prompting asset management firms to explore integrating crypto and derivatives into new investment products. Calamos recently announced plans to launch a structured protection ETF, enabling investors to benefit from Bitcoin’s upside with 100% downside protection. This fund will employ options linked to the Cboe Bitcoin U.S. ETF Index alongside Treasury holdings, targeting a 12-month investment period with trading under the ticker CBOJ. The successful introduction of spot Bitcoin funds in January led to significant inflows, with the iShares Bitcoin Trust ETF (IBIT) surpassing $50 billion in assets. However, volatility still deters many financial advisors from investing in Bitcoin, indicating potential for structured funds like Calamos’ to bridge this gap. Other firms, including Innovator and First Trust, are also developing similar funding strategies, aiming to combine Bitcoin with income-generation techniques. Calamos’ offerings will include “floor” funds with varying levels of protection. The evolving options market is pivotal for these products, as liquidity issues have historically impeded performance for leveraged Bitcoin-linked funds. As the regulatory landscape may become more favorable for crypto under upcoming leadership, further innovations are anticipated throughout 2025.
