Calamos Investments Introduces a Laddered Bitcoin ETF
Calamos Investments, managing over $40 billion in assets, has filed for a “laddered” Bitcoin exchange-traded fund (ETF) in the United States. This product aims to provide investors exposure to digital assets while mitigating risks from cryptocurrency volatility through an innovative options strategy.
How the Options Strategy Works
The ETF will invest in options contracts linked to five major Bitcoin ETFs: BlackRock‘s iShares Bitcoin Trust, Grayscale’s Bitcoin Mini Trust, Bitwise Bitcoin ETF, Fidelity Wise Origin Bitcoin Fund, and ARK 21Shares Bitcoin ETF. These options give holders the right, but not obligation, to buy or sell assets at set prices before expiration dates, serving as risk management tools.
Built-in Protection Features
According to SEC filings, the ETF targets downside protection for losses exceeding 20%. The fund may also allocate to cash and US Treasuries based on market conditions, balancing risk management with potential upside participation.
Bitcoin ETF Market Growth
Since their January 2024 approval, Bitcoin spot ETFs have attracted $53.1 billion in net inflows, holding $150 billion in assets – about 6.5% of Bitcoin’s total market capitalization. The five reference ETFs collectively manage $124.3 billion, representing 83.1% of the Bitcoin ETF market.
Calamos’s Previous Bitcoin Products
In January, Calamos launched three “protected” Bitcoin ETFs with varying risk/return profiles, demonstrating their focus on innovative cryptocurrency investment solutions.
