Calamos Investments, an asset management firm with over $40 billion in assets under management, has filed for a new Bitcoin (BTC) exchange-traded fund (ETF) in the United States . This ETF will employ a "laddered" options strategy tied to five major Bitcoin funds, aiming to provide investors with a more diversified and potentially less volatile exposure to the cryptocurrency market .
The strategy involves using options contracts to manage risk and optimize returns, leveraging the performance of five leading Bitcoin funds: BlackRock's iShares Bitcoin Trust, Grayscale's Bitcoin Mini Trust, the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, and the ARK 21Shares Bitcoin ETF .
Options, in general, are investment instruments that give the holder the right but not the obligation to buy or sell an underlying asset before or on a certain date . They are commonly used to mitigate risk and protect against potential losses . The new ETF will target downside protection for losses greater than 20% . Aside from options, the fund can invest in cash and US Treasurys, depending on the portfolio management approach used .
This approach is designed to provide a buffer against market fluctuations, making it an attractive option for investors who are cautious about the volatility of Bitcoin but still want to gain exposure to its potential growth .
The new ETF will be managed by Matt Kaufman, the head of ETFs at Calamos Investments . Kaufman has extensive experience in the ETF space and has been instrumental in developing protected Bitcoin ETFs that offer downside protection while allowing investors to benefit from the upside of Bitcoin . This expertise will be crucial in implementing the options strategy effectively .
The launch of this ETF is expected to attract a wide range of investors, from those new to cryptocurrencies to seasoned traders looking for a more managed approach to Bitcoin investment . The options strategy tied to five major Bitcoin funds provides a unique value proposition .
Calamos also offers a range of Protected Bitcoin ETFs are designed to provide upside exposure to the price of bitcoin (to a cap), with specific levels of downside protection, over an outcome period . Generally, the lower the protection level, the higher the upside opportunity . The Calamos Bitcoin Structured Alt Protection ETF — January (CBOJ) is set to offer “systematic risk management” across its roughly one-year outcome period .