Summary:
CBOJ is a new Bitcoin ETF launching on January 22 with 100% downside protection.
Utilizes a combination of US Treasuries and options for loss protection.
Annual reset allows for continuous risk management and growth potential.
Reflects increasing investor interest in Bitcoin products with $35 billion inflows in the past year.
Launch highlights the intense competition in the Bitcoin ETF market.
Calamos Investments has announced the launch of a groundbreaking Bitcoin ETF, named CBOJ, set to debut on CBOE Global Markets on January 22. This innovative ETF offers 100% downside protection, allowing investors to engage in Bitcoin's growth potential while minimizing risks associated with volatility.
What is CBOJ?
CBOJ utilizes a strategic combination of US Treasuries and options linked to the CBOE Bitcoin US ETF Index to shield against losses. The fund features an annual reset, which introduces a new upside cap and updated protection for the following 12 months, ensuring ongoing risk management for long-term holders.
Nate Geraci, president of ETF Store, highlighted the ETF's structure, noting that it provides full downside protection for investors who hold it through the outcome period, albeit with limited upside gains. Matt Kaufman, Head of ETFs at Calamos, emphasized the growing demand among investors and advisors for tools that can capture Bitcoin's growth potential while managing its inherent risks.
âMany investors have been hesitant to invest in bitcoin due to its epic volatility. [CBOJ] meets advisor, institutional, and investor demands for solutions that capture bitcoinâs growth potential while mitigating the historically high volatility and drawdowns of this fast-growing and high-performing asset.â â Matt Kaufman
The Competitive Bitcoin ETF Landscape
The Bitcoin ETF market has experienced explosive growth recently, with inflows exceeding $35 billion across 12 products. BlackRockâs IBIT led the charge, amassing over $53 billion in assets during its inaugural year. This momentum reflects an increasing interest in Bitcoin-related products, with expectations for continued growth this year.
Bloomberg ETF analyst Eric Balchunas remarked on the intense competition in the market, noting that CBOJ's unique structure and timely launch underscore how ultra-competitive this new frontier is.
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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