A Safer Way to Invest in Bitcoin

A major exchange-traded fund provider, Calamos Investments, has introduced the Calamos Bitcoin Structured Alt Protection ETF (CBOJ), claiming it to be the world's first downside protected bitcoin ETF. This innovative fund is designed for risk-averse investors, aiming to eliminate the volatility typically associated with bitcoin investing.

Key Features of the CBOJ ETF

According to Matt Kaufman, head of the ETF at Calamos, the fund allows investors to secure 100% protection while still participating in the market. "You can get in all day long. Get that 100% protection. And then at the end of the day, we're going to strike the cap," Kaufman explained in an interview on CNBC's ETF Edge.

The launch of this ETF comes at a time when bitcoin has seen a 10% increase, marking a winning streak for the cryptocurrency. Calamos aims to provide investors with a risk-controlled environment to access bitcoin, addressing concerns over its notorious volatility.

Meeting Investor Demands

Kaufman emphasized that many potential investors have been hesitant to dip into bitcoin due to its high volatility. The CBOJ ETF seeks to capture bitcoin's growth potential while mitigating risks associated with price fluctuations.

Calamos has plans for more crypto funds, with upcoming launches of the Calamos Bitcoin 90 Series Structured Alt Protection ETF (CBXJ) and Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ) scheduled for February 4.

No Meme Coin ETFs Here

Despite the expanding cryptocurrency fund offerings, Kaufman stated that Calamos has no interest in creating meme coin ETFs. The focus remains on providing serious investment options that align with various risk tolerances.